Europe close: Stocks stay down on tech, economic concerns
By Josh White
Date: Monday 17 Nov 2025
(Sharecast News) - European equities drifted lower on Monday as investors adopted a cautious stance ahead of delayed US economic data, with the absence of October inflation and employment figures leaving policymakers with limited visibility on the outlook for interest rates.
The Stoxx 600 slipped 0.54% to 571.68 by midday, while Germany's DAX fell 1.2% to 23,590.52, France's CAC 40 eased 0.63% to 8,119.02 and London's FTSE 100 edged down 0.24% to 9,675.43.
As Russ Mould at AJ Bell noted, "The FTSE 100 managed a steady start on Monday despite volatility in Asian stocks and a lacklustre end to last week on Wall Street," highlighting the restrained tone across markets.
Swiss economy contracts, UK consumer confidence weakens
Sentiment was further tested by weak European data.
Switzerland's economy contracted for the first time in more than two years, with third-quarter GDP shrinking by 0.5% as US tariffs imposed in August hit the country's pharmaceuticals and chemicals sectors.
The State Secretariat for Economic Affairs said industry output posted a sharp decline, while services grew at a below-average rate.
The contraction, only the second since the pandemic, followed Washington's decision on Friday to cut tariffs on Swiss imports to 15%, bringing them closer to EU levels.
Patrick Munnelly at TickMill said risk appetite has struggled to recover, adding that "US equity futures are on the rise, fuelled by gains in Asian tech stocks ... as investors gear up for a crucial week featuring Nvidia's earnings and the long-awaited release of US economic data," but he stressed that the lack of clarity on Fed policy remained a limiting factor.
In the UK, consumer confidence weakened ahead of the 26 November Budget.
The S&P Global sentiment index fell to a four-month low of 45.2, with households reporting the steepest drop in disposable income in six months and reduced willingness to make major purchases.
Economists warned that uncertainty around potential tax changes was weighing on sentiment, while inflation remained above the Bank of England's target and interest rates stayed elevated at 4%.
Mould said the UK inflation reading "will also be under the microscope as the Budget nears and the Bank of England weighs its own decision on rates," reinforcing the sensitivity of domestic sentiment to fiscal and monetary uncertainty.
UK housing data added to the downbeat tone.
Rightmove said average new-seller asking prices dropped 1.8% in November, reversing October's gain and exceeding the typical seasonal decline.
Prices were down 0.5% year-on-year amid a spike in supply and growing caution ahead of the Budget.
Sales of homes priced above £2m fell sharply as speculation over a possible mansion tax or stamp duty changes deterred buyers.
As Mould observed, "These show it is a buyers' market with new sellers reducing their asking prices by the largest amount at this time of year since 2012," adding that fears about tax changes were clearly undermining confidence.
Across the Atlantic, a rare bright spot emerged in US data.
The NY Empire State manufacturing index unexpectedly rose to 18.7 in November, its highest level in a year, as new orders and shipments strengthened and inventories returned to positive territory.
Firms, however, expressed concerns about future business conditions due to expected price increases.
Munnelly said that "this week promises a wave of long-overdue US economic data, as federal agencies resume reporting after weeks of disruption," with traders increasingly focused on the Fed minutes and updated employment indicators.
He added that Fed officials have struck "a cautious tone regarding a potential rate cut in December," following Jerome Powell's comment that such a move is "far from certain."
SIG, Dassault among the day's gainers
In corporate trading, several stocks bucked the broader market weakness.
SIG Group jumped 9.33% after appointing Mikko Keto as chief executive.
Dassault Aviation climbed 4.6% following comments from Ukraine's president Volodymyr Zelenskyy that a letter of intent had been signed for around 100 Rafale fighter jets.
WPP surged 8.8% on reports of potential takeover interest from Havas and private equity groups Apollo and KKR.
Mould said there had been "speculation about a bid from French rival Havas and private equity firms reportedly looking to pick off bits of the business," adding that with shares trading at 25-year lows, the group appears vulnerable to being broken up.
In the defence sector, Saab rose 2.49% after securing orders from Airbus for its Arexis electronic warfare system, while Airbus itself gained 0.39% amid reports it was close to winning a major jet order from Flydubai at the Dubai Airshow.
Reporting by Josh White for Sharecast.com.
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