STOXX 600 Slips 0.45% on Nov 5, 2026 as Tech and Rheinmetall Slide

Key takeaways

• The STOXX Europe 600 slipped 0.45% to 654.47 at the close of continuous trading (16:30 UTC) on Thursday, Nov 5, 2026, Yahoo Finance data show, after reaching 662.42 earlier in the session.
• Technology shares led the decline. Trading Economics reported that the European tech sector fell more than 4% and ASML lost about 7%, as investors weighed closer scrutiny of US AI data-centre projects after Democrats won both chambers of Congress.
• Rheinmetall fell more than 16%, Trading Economics reported, after the defence group cut its 2026 sales forecast to about €13.2 billion, its second cut in three months.
• The Bank of England raised Bank Rate by 0.25 percentage points to 4% in an 8–1 vote, its first increase since 2023. Catherine Mann voted for a 0.5-point rise.
• Italy's FTSE MIB fell 1.06% to 50,490.81 at 16:30 UTC, while France's CAC 40 rose 0.29% and Spain's IBEX 35 gained 0.46%.
• Germany's 10-year Bund yield fell 0.051 percentage points to 3.236%, Investing.com data show. Trading Economics said the yield reached its lowest level since late August.

Session recap

European stocks gave back early gains on Thursday, Nov 5. Morning strength in miners faded as a sell-off in technology shares deepened. The STOXX 600 had risen 1.82% on Wednesday, as covered in our Nov 4 Europe brief. For other regions, see Asian and global market closes.

At 08:07 UTC, the STOXX 600 was up 0.5% at 660.33, Reuters reported via Business Recorder. Basic resources rose 2.7%, and ArcelorMittal gained 6% after beating core profit expectations. Yahoo Finance data show the index peaked at 662.42 during the day and later fell as low as 652.25.

The table uses Yahoo Finance last-traded values at 16:30 UTC for indices, currencies and Brent. Official closing-auction levels published later can differ slightly. Investing.com, for example, showed the STOXX 600 at 653.28, down 0.63%, after the session. Changes are measured against each instrument's Nov 4 close.

Note: the gilt yield is shown as n/a because the two providers checked disagreed on the direction of the move. Investing.com showed 5.148%, up 0.011 points, while Trading Economics showed 5.131%, down about 0.03 points. Trading Economics showed the Bund at 3.241%, close to the Investing.com figure. Brent is the January 2027 contract (LCOF7 on Investing.com), compared with its Nov 4 settlement of $94.62. Brent settles at 19:30 UTC, so $96.77 is an intraday price.

What drove it

Tech sell-off after the US midterms

The main drag was technology. Trading Economics reported that the European tech sector fell more than 4%, which it linked to a global move away from AI-related stocks after Democrats won both chambers of the US Congress. Investors feared "tighter regulation and increased scrutiny of US data center projects," it wrote, which could slow chip demand. ASML fell about 7%. Earlier, Reuters reported via Business Recorder that ASML and Soitec were tracking declines in Asian tech stocks.

Rheinmetall guidance cut

Rheinmetall was the biggest faller in the STOXX 600, Reuters reported via Euronext. The company cut its 2026 sales forecast to about €13.2 billion from €13.7–14.2 billion, lowered its operating margin target to about 18.5% and dropped a cash conversion target. It said revenue from Germany's Arminius Boxer programme would move into next year and that slower batch approvals were delaying artillery ammunition revenue. Jefferies said it was surprised by the size of the cut so late in the year, according to the same report. The shares were down 13% in early afternoon and closed more than 16% lower, according to Trading Economics.

London: defence, banks and copper miners

The FTSE 100 fell on losses in defence and banks, Trading Economics reported. BAE Systems fell more than 5%, Rolls-Royce nearly 3% and NatWest about 4%. Barclays and Standard Chartered lost more than 2%. Copper miners Anglo American and Antofagasta fell about 3%, as copper slid on concerns about weaker AI-related demand. Precious-metal miners outperformed: Endeavour rose nearly 6% and Fresnillo about 2%. In Frankfurt, Deutsche Telekom fell nearly 2% after a €2 billion buyback fell short of expectations, Trading Economics said.

Bank of England rate hike

The Bank of England raised Bank Rate to 4% from 3.75%. Its Monetary Policy Committee voted 8–1, with Catherine Mann preferring a rise to 4.25%. The Bank expects CPI inflation to rise to around 5% by the middle of 2027, according to its Monetary Policy Summary. Governor Andrew Bailey said "the case is clear for a 25-basis point rise now," Mortgage Professional reported. He added that lowering the risk of further rises "requires real progress towards settling the conflict in the Middle East." Sterling ended flat against the dollar at 1.3472 at 16:30 UTC.

Bonds, oil and German data

Government bonds gained. Trading Economics linked the Bund rally to US Treasuries, as investors moved into safer assets during the tech sell-off. Brent recovered part of Wednesday's 8.67% drop and traded at $96.77 at 16:30 UTC. Investing.com data show it had traded as low as $93.50 during the session. Reuters, via Business Recorder, reported in the morning that traders thought the midterm result might make President Donald Trump less likely to escalate the conflict with Iran. The reason for the rebound later in the day has not been confirmed. In Germany, Destatis said September manufacturing orders rose 4.4% from August.

What it means

Thursday's session showed how quickly the post-election rally narrowed. Investors who had bought banks and renewables on Wednesday turned to chip and AI-linked stocks, which are exposed to US policy on data centres. The Bank of England's hike and its warning about energy-driven inflation keep oil prices central for European assets. Oil also matters to oil-importing economies in Southeast Asia, as covered in our analysis of what the Brent slump means for ASEAN.

Political & policy watch

• US Congress: Trading Economics said Democratic control of the House reduces the chance of further deficit-expanding US legislation. It also said investors expect more scrutiny of US data-centre projects. For the Asian market response, see US midterm results and ASEAN markets.
• Middle East and energy: The Bank of England tied its outlook to energy prices linked to the Middle East conflict. Bailey said further easing of risks depends on progress towards settling it.
• Euro area inflation: Eurostat's flash estimate showed annual inflation at 4.0% in October, up from 3.8%. Trading Economics reported that ECB officials have signalled further rate increases may be needed.
• German defence spending: The Rheinmetall cut shows how timing of government contracts, including the Arminius Boxer programme, can move defence stocks.

What to watch next

• Nov 18: Eurostat publishes full October inflation data for the euro area.
• Dec 16–17: ECB Governing Council monetary policy meeting.
• Dec 17: Next Bank of England Bank Rate decision.

Risk checklist for readers

• Sector moves can diverge sharply from the index. On Thursday, tech and defence fell while precious-metal miners rose.
• Company guidance cuts can move a single stock by double digits in one session, especially when cash flow targets change.
• Central bank decisions affect gilt yields, sterling and bank shares. Read the vote split and guidance, not only the headline rate.
• Oil is moving on Middle East headlines and can swing several percent within a day. Settlement prices can differ from intraday quotes.
• Index levels at 16:30 UTC can differ from official closing-auction values. Check the exchange or index provider for final figures.
• For investors outside Europe, euro and sterling moves change returns when converted back to their home currency.

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