European equities drifted lower Monday as investors digested a fresh wave of global growth concerns while positioning cautiously ahead of Nvidia’s highly anticipated earnings release. At 08:02 GMT, Germany’s DAX was flat, France’s CAC 40 dipped 0.1%, and the U.K.’s FTSE 100 slipped 0.2%, extending last week’s risk-off sentiment.
The downbeat tone followed steep losses across European markets on Friday, fueled by renewed fears of an overextended artificial intelligence rally and swelling doubts about the world economy. Data from Japan over the weekend added to the pessimism, showing the country’s economy contracted 1.8% annualized in the July–September quarter. Weak private consumption and falling exports—hit by higher U.S. tariffs—drove the decline.
Recent indicators from China also hinted at decelerating momentum, while the prolonged U.S. federal shutdown is expected to weigh on fourth-quarter output. Within Europe, the U.K. economy shrank in September and the eurozone expanded just 0.2% last quarter, signaling tepid underlying demand.
- Japan GDP: -1.8% annualized, -0.4% quarterly
- Eurozone Q3 growth: 0.2%
- FTSE 100: -0.2%, CAC 40: -0.1%
Nvidia Earnings Could Steer Market Mood
Attention now shifts to Nvidia’s Wednesday earnings—widely viewed as a referendum on the durability of the AI boom. Analysts expect a 53.8% year-over-year jump in Q3 EPS, according to LSEG estimates, with rising revenue projections leaving the company under pressure to exceed lofty expectations. Nvidia’s valuation, hovering near $5 trillion, amplifies the stakes.
Investor unease intensified after filings revealed that Peter Thiel sold his nearly $100 million Nvidia stake, adding to concerns over stretched valuations across the megacap tech space. These worries had already contributed to sector-wide declines through late October and early November.
European corporate news was limited. Prosus forecast up to a 37% rise in first-half fiscal 2026 EPS, while France’s L’Oréal announced a minority investment in China’s Lan skincare brand, marking its second strategic move in the region in recent months.
Oil Eases as Russian Exports Normalize
Crude prices slipped as tanker activity resumed at Russia’s Novorossiysk port following a brief shutdown caused by Ukrainian strikes. Brent fell 0.7% to $63.97, while WTI slid 0.7% to $59.51 after both contracts surged more than 2% on Friday when the disruption temporarily sidelined about 2% of global supply.
By Sunday, tanker-tracking data indicated crude loadings had restarted, easing near-term supply concerns.
- Brent: $63.97, -0.7%
- WTI: $59.51, -0.7%
- Supply impact: ~2% of global flows