European equities showed limited movement on Thursday, with major indexes easing as investors digested mixed macro cues and sector-specific developments.
The Euro Stoxx 50 fell 0.21% to 6,431.01 points by midday, while the Swiss SMI declined 0.21% to 14,356.24 and the UK’s FTSE 100 slipped 0.17% to 10,724.63. Analysts at Landesbank Baden-Württemberg (LBBW) noted that additional U.S. Treasury purchases would do little to offset rising supply, driven by expanded federal borrowing and capital needs of tech firms investing in AI infrastructure.
Oil prices climbed further amid heightened geopolitical tensions between the U.S. and Iran, with President Donald Trump warning of a prolonged economic confrontation rather than a swift resolution. The standoff has raised concerns over potential supply disruptions, supporting gains in energy and utility stocks. Automotive shares also advanced, led by Michelin, which rose 1.9% after JPMorgan upgraded its price target to €42 from €35 and upgraded the stock to Overweight, citing stronger demand for truck replacement tires and structural growth in high-tech composite materials.
Retail stocks lagged, with JD Sports bearing the brunt of investor concern after cutting its profit guidance for the 2026/27 fiscal year. Shares in the UK-listed sports retailer plunged roughly 15%, extending losses from a weak second-quarter performance. The company’s struggles mirrored those of Swiss rival On Holding, which had also disappointed with its latest quarterly sales report. Deutsche Bank analyst Adam Cochrane highlighted weak U.S. business as a key drag on JD Sports’ outlook.
