European equities decline amid rising yields and geopolitical risks

European equities continued their downward trend on Thursday, with the Euro Stoxx 50 index dropping 0.46 percent to 6,270.63 points. Outside the eurozone, the FTSE 100 remained relatively stable, while the Swiss SMI fell 0.25 percent to 13,887.10 points. The Swiss National Bank kept its benchmark interest rate unchanged at zero percent and slightly raised its inflation outlook. Automotive stocks were the worst performers, nearing year-low levels, while financials struggled amid UBS’s 2.3 percent decline, reflecting ongoing regulatory scrutiny after the Swiss parliament’s recent tightening of capital requirements. H&M’s shares fell 2.1 percent, following mixed third-quarter earnings that exceeded estimates but highlighted elevated inventory levels and cautious margin expectations. In contrast, Asos’s shares rose 8 percent, supported by a revised earnings outlook and raised price targets by analysts. Schneider Electric’s shares remained unchanged after announcing plans to acquire the Bulgarian smart-device maker Shelly Group, with a proposed voluntary takeover offer of 70 euros per share.