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# Europe's STOXX 600 slips 0.31%: France and weak PMI weigh (Oct 23)
- URL: https://bullquill.com/europe-stocks-daily-brief-2026-10-23/
- Published: 2026-10-23T16:50:50.000Z
- Updated: 2026-10-24T07:13:48.000Z
- Description: The STOXX 600 fell 0.31% on Friday and lost more than 1% on the week. French protests, a Moody's review and a weaker eurozone PMI weighed, while Kering slumped and L'Oréal rallied.
- Author: Rowan Ashby
- Tags: Markets, Daily Brief, Europe, STOXX Europe 600, DAX, France, Kering, Moody's, #lang-en, #tr-europe-stocks-daily-brief-2026-10-23

## Key takeaways

- The STOXX Europe 600 fell 0.31% to 635.77 on Friday, October 23, 2026, and ended the week more than 1% lower, according to Yahoo Finance data and Investing.com.
- Germany's DAX lost 0.75% to 25,181.65, and the Euro Stoxx 50 fell 0.31% to 6,068.22, dpa-AFX reported. The DAX fell 1.7% over the week.
- The eurozone flash composite PMI dropped to 51.9 from 53.1, below the 52.7 expected in a Reuters poll. France's composite fell to 48.4, a contraction.
- Italy's FTSE MIB rose 0.36% to 48,558.86 and Spain's IBEX 35 gained 0.40% to 18,989.80, partly recovering Thursday's losses.
- Kering fell more than 10% after Gucci's third-quarter sales declined, while L'Oréal rose nearly 6% after beating sales forecasts, Reuters and MarketScreener reported.

## Session recap

The Europe stock market today closed lower for a second day, but the losses were smaller than on Thursday. French political unrest, a weaker-than-expected eurozone business survey and higher oil prices weighed on sentiment, while energy shares gained. The STOXX 600 traded between a 0.79% loss and a 0.13% gain during the session, MarketScreener reported an hour before the close.

__European markets, Friday, October 23, 2026__
| Instrument                 | Close/Level | Change    | % change | As of (UTC)      | Source                 |
| -------------------------- | ----------- | --------- | -------- | ---------------- | ---------------------- |
| STOXX Europe 600           | 635.77      | −1.97     | −0.31%   | 2026-10-23 15:30 | Yahoo Finance          |
| Euro Stoxx 50              | 6,068.22    | −18.79    | −0.31%   | 2026-10-23 15:30 | dpa-AFX; Yahoo Finance |
| DAX                        | 25,181.65   | −190.10   | −0.75%   | 2026-10-23 15:30 | dpa-AFX; Yahoo Finance |
| FTSE 100                   | 10,690.36   | −34.67    | −0.32%   | 2026-10-23 15:30 | Yahoo Finance          |
| CAC 40                     | 7,782.82    | −28.44    | −0.36%   | 2026-10-23 15:30 | Yahoo Finance          |
| FTSE MIB                   | 48,558.86   | +174.86   | +0.36%   | 2026-10-23 15:30 | Yahoo Finance          |
| IBEX 35                    | 18,989.80   | +76.30    | +0.40%   | 2026-10-23 15:30 | Yahoo Finance          |
| EUR/USD (ECB reference)    | 1.1193      | −0.0012   | −0.11%   | 2026-10-23 12:15 | European Central Bank  |
| GBP/USD                    | 1.3374      | −0.0022   | −0.16%   | 2026-10-23 16:45 | Yahoo Finance          |
| Germany 10-year Bund yield | 3.347%      | +0.010 pt | +0.30%   | 2026-10-23 16:50 | Investing.com          |
| UK 10-year gilt yield      | 5.378%      | +0.044 pt | +0.82%   | 2026-10-23 16:50 | Investing.com          |

Notes: changes are calculated from Thursday's closes (FTSE 100: 10,725.03, Sharecast). Yield rows are Investing.com daily values retrieved at 16:50 UTC. The DAX touched an intraday low of 25,013.54, and the Euro Stoxx 50 ranged from 6,021.09 to 6,097.16 (Yahoo Finance).

## What drove it

### France: unrest, bond spreads and a Moody's review

France remained the main source of stress. Reuters reported that businesses, museums and cultural venues planned weekend closures ahead of nationwide protests on Saturday, as President Emmanuel Macron tries to restore order. France's 10-year yield was about 5.03% on Friday morning, and its gap over German Bunds was about 170 basis points, according to TradeTheNews via FXStreet. That spread had tested 175 basis points on Thursday, the widest since late 2011\. Investors also waited for Moody's review of France's Aa3 rating, which has a negative outlook. The decision was due after the European close. Background is in our explainer on [why France's 10-year yield passed 5%](https://bullquill.com/france-10-year-bond-yield-5-percent-what-changed/).

### Weak eurozone business survey

The HCOB flash composite PMI, a monthly survey of purchasing managers where readings above 50 signal growth, fell to 51.9 in October from 53.1, Reuters reported. It was the lowest since June. France's composite fell to 48.4 from 51.1, while Germany's eased to 52.8 from 53.8, according to ActionForex. Reuters said input costs rose faster for a second month because of energy and transport prices. Rory Fennessy of Oxford Economics told Reuters the data "pour a little bit of cold water" on hopes for improving sentiment. Thomas Gitzel of VP Bank told dpa-AFX that the French protests were becoming an economic risk.

### Company results

Kering fell more than 10% after third-quarter sales at Gucci declined (Investing.com). Reuters linked pressure on luxury groups to the Middle East war and China's tax crackdown on the wealthy. Volvo Cars fell more than 27% to a record low after a bigger-than-expected operating loss and plans to cut 2,500 more jobs, Reuters said. L'Oréal rose nearly 6% after organic sales grew 7.2%, against an analyst estimate of 5.9% (MarketScreener). Holcim gained about 5% after raising its full-year forecast. In Frankfurt, MTU fell 4.8% after mixed results from Safran, and Deutsche Telekom lost 3.2%, dpa-AFX reported. Evonik rose 2.7% after a Bloomberg report that BASF may raise its bid. More on the earnings season is in our report on [energy profits in European Q3 earnings](https://bullquill.com/european-q3-earnings-energy-windfall/).

### Oil and sectors

Brent crude traded at about $116 a barrel an hour before the close, up 2.5%, MarketScreener reported. Energy was the best STOXX 600 sector at that point, up 2.61%, while telecoms fell 1.64% and industrial goods 1.57%. Investing.com linked the oil rally to Houthi attacks on Saudi energy sites. AI-linked technology stocks stayed weak, as in our [October 22 Europe brief](https://bullquill.com/europe-stocks-daily-brief-2026-10-22/); Infineon fell 2.4% (dpa-AFX). Europe imports most of its oil, so higher prices raise costs for companies and households (see [how oil shocks hit inflation and rates](https://bullquill.com/how-oil-price-shocks-hit-inflation-and-rates/)).

## Political & policy watch

### France

Reuters reported that authorities added police and security forces before Saturday's protests, after violence and looting last weekend. Curfews have applied in parts of Paris, Lille and Nice, according to Investing.com, which also cited a budget standoff. Our earlier report covers [the unions, the government and what comes next](https://bullquill.com/france-protests-unions-lecornu-what-next/).

### Central banks

Investors price a more than 90% chance that the European Central Bank holds rates next week, Reuters reported. The ECB has raised rates twice this year, and a Reuters poll expects a 25 basis point increase in December. In the UK, markets price at least three 25 basis point Bank of England increases by April 2027, according to Trading Economics.

### United Kingdom and the Middle East

The UK Budget is due on October 28\. Trading Economics reported that UK retail sales fell more than expected in September. The US has ordered non-emergency staff to leave Saudi Arabia ([our report](https://bullquill.com/us-orders-embassy-staff-leave-saudi-arabia/)).

## What it means

Friday's moves were smaller than Thursday's, and Milan and Madrid rose. Even so, the week ended with French risk, slower eurozone growth and higher energy costs all pointing the same way. The Moody's decision, the weekend protests and next week's central bank meetings will show whether the pressure on French bonds spreads further.

## What to watch next

- **October 23, about 20:00 UTC:** Moody's rating review for France.
- **October 24:** nationwide protests planned in France.
- **October 27–28:** US Federal Reserve policy meeting.
- **October 28:** UK Budget.
- **October 29:** ECB rate decision.
- **October 30:** Bank of Japan decision.
- **Next week:** results from BP and Shell (Reuters) and eurozone flash inflation for October (Eurostat).
- **November 5:** Bank of England decision.

Track Asian and global markets on our [markets dashboard](https://bullquill.com/markets/).

## Risk checklist for readers

- **Rating decisions often land after the close.** A downgrade or outlook change published on a Friday evening can affect bond and bank prices when markets reopen on Monday.
- **Read the PMI correctly.** A reading above 50 still means growth; a fall from 53.1 to 51.9 means slower growth, not contraction. France's 48.4 is below 50, which signals contraction.
- **Spreads show country risk.** The extra yield France pays over Germany reflects how investors judge its fiscal outlook. Wider spreads raise borrowing costs for the state and its banks.
- **Index mix matters.** The FTSE 100 and IBEX 35 hold more energy and bank stocks; the DAX and CAC 40 more industrial, technology and luxury names.
- **Busy calendar.** Fed, ECB and Bank of Japan decisions and a UK Budget in one week can cause sharp moves in rates and currencies.
- **Check official data.** Closing values differ slightly between data providers. STOXX, the exchanges and the ECB publish reference values.

## Frequently asked questions

### What time do European stock markets close?

The main cash markets in Frankfurt (Xetra), Paris, Amsterdam, Milan and Madrid close at 17:30 Central European Time, and the London Stock Exchange closes at 16:30 UK time. In UTC that is 15:30 during summer time and 16:30 in winter.

### What does the eurozone PMI measure?

The HCOB Purchasing Managers' Index, compiled by S&P Global, surveys companies about output, new orders, prices and jobs. A reading above 50 signals growth compared with the previous month and below 50 signals contraction. The flash estimate is published around the third week of each month.

### Why do credit rating decisions matter for European markets?

Agencies such as Moody's, S&P and Fitch assess how likely a government is to repay its debt. A downgrade can raise that country's borrowing costs, widen its bond spread over Germany and weigh on domestic banks that hold large amounts of government bonds.

## Sources

- [Yahoo Finance: STOXX Europe 600 historical data](https://finance.yahoo.com/quote/%5ESTOXX/history/?ref=bullquill.com)
- [Yahoo Finance: DAX historical data](https://finance.yahoo.com/quote/%5EGDAXI/history/?ref=bullquill.com)
- [Yahoo Finance: FTSE 100 historical data](https://finance.yahoo.com/quote/%5EFTSE/history/?ref=bullquill.com)
- [Yahoo Finance: CAC 40 historical data](https://finance.yahoo.com/quote/%5EFCHI/history/?ref=bullquill.com)
- [Yahoo Finance: FTSE MIB historical data](https://finance.yahoo.com/quote/FTSEMIB.MI/history/?ref=bullquill.com)
- [Yahoo Finance: IBEX 35 historical data](https://finance.yahoo.com/quote/%5EIBEX/history/?ref=bullquill.com)
- [Yahoo Finance: GBP/USD](https://finance.yahoo.com/quote/GBPUSD%3DX/?ref=bullquill.com)
- [dpa-AFX via ARIVA.DE: Frankfurt close, October 23, 2026 (in German)](https://www.ariva.de/news/roundup-aktien-frankfurt-schluss-frankreich-sorgen-lassen-12180188?ref=bullquill.com)
- [Investing.com: European shares close lower as French fiscal turmoil drives weekly loss](https://uk.investing.com/news/stock-market-news/european-shares-slip-as-french-fiscal-turmoil-drives-weekly-loss-4927420?ref=bullquill.com)
- [MarketScreener: Leading European exchanges fall ahead of close](https://www.marketscreener.com/news/leading-european-exchanges-fall-ahead-of-close-stoxx-600-index-down-0-6-percent-ce785cdfda8df024?ref=bullquill.com)
- [Reuters via Investing.com: STOXX 600 extends fall as Kering slumps, oil climbs](https://www.investing.com/news/stock-market-news/stoxx-600-extends-fall-as-kering-slumps-oil-climbs-4968205?ref=bullquill.com)
- [Reuters via Investing.com: Euro zone growth slows to 4-month low, PMI shows](https://www.investing.com/news/economic-indicators/euro-zone-growth-slows-to-4month-low-amid-rising-costs-and-french-turmoil-pmi-shows-4968292?ref=bullquill.com)
- [ActionForex: Eurozone PMI composite slows to 51.9 as France slips back into contraction](https://www.actionforex.com/live-comments/658516-eurozone-pmi-composite-slows-to-51-9-as-france-slips-back-into-contraction/?ref=bullquill.com)
- [European Central Bank: euro reference rate, US dollar](https://www.ecb.europa.eu/stats/policy%5Fand%5Fexchange%5Frates/euro%5Freference%5Fexchange%5Frates/html/eurofxref-graph-usd.en.html?ref=bullquill.com)
- [Investing.com: Germany 10-year bond yield historical data](https://www.investing.com/rates-bonds/germany-10-year-bond-yield-historical-data?ref=bullquill.com)
- [Investing.com: UK 10-year bond yield historical data](https://www.investing.com/rates-bonds/uk-10-year-bond-yield-historical-data?ref=bullquill.com)
- [Trading Economics: Germany 10-year Bund yield](https://tradingeconomics.com/germany/government-bond-yield?ref=bullquill.com)
- [Trading Economics: UK 10-year gilt yield](https://tradingeconomics.com/united-kingdom/government-bond-yield?ref=bullquill.com)
- [TradeTheNews via FXStreet: France's 10-year spread tests 175bps hours before Moody's](https://www.fxstreet.com/analysis/frances-10-year-spread-tests-175bps-hours-before-moodys-202610230952?ref=bullquill.com)
- [Global Banking & Finance Review: France faces Moody's ratings verdict](https://www.globalbankingandfinance.com/unrest-hit-france-poised-moodys-ratings-verdict/?ref=bullquill.com)
- [Sharecast: London close, October 22, 2026](https://www.sharecast.com/news/market-report-close/london-close-ftse-falls-amid-higher-oil-prices-ai-spending-worries--23903972.html?ref=bullquill.com)
- [Pensions Age: Budget to be held on October 28](https://pensionsage.com/pa/Chancellor-confirms-first-Budget-will-be-held-on-28-October.php?ref=bullquill.com)
- [Federal Reserve: FOMC meeting calendar](https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm)
- [Cambridge Currencies: Bank of England decision dates](https://cambridgecurrencies.com/next-bank-of-england-interest-rate-decision-date/?ref=bullquill.com)

This article is for information only and is not investment advice.