The euro‑area economy expanded a stronger‑than‑expected 0.4% in the third quarter, shrugging off high inflation and volatility in bond markets and growing at twice the pace forecasters had penciled in — even as performances diverged among the single currency’s largest members.
Germany and Spain posted growth, Italy essentially stagnated, and France unexpectedly contracted 0.1%, underscoring a patchwork recovery that leaves policymakers watching for signs of a more durable rebound. The unexpectedly resilient headline figure masks domestic weaknesses in several economies and highlights how consumer and services activity continues to offset broader price and financial‑market pressures.
Markets reacted to a string of corporate results and takeover drama that added to the day’s uneven tone. Intel Corp. suffered a rout after warning on revenue, blaming sluggish demand for PC processors and supply‑chain disruptions for data‑center components. Shares plunged as much as 25% in early trading — one of the biggest one‑day losses in the chip maker’s recent history — intensifying concerns about the tech sector’s near‑term outlook and the health of enterprise spending.
In M&A activity, Czech arms heir Michal Strnad tabled a EUR 30 billion ($33.5 billion) proposal to acquire the family holding company that controls EssilorLuxottica SA, the world’s largest eyewear group. Strnad said he would accept a controlling stake of at least 62.5% if some owners choose to remain, a bid that would rank among the region’s biggest corporate takeovers and could trigger a tussle among long‑standing shareholders.
Energy and pharmaceuticals provided counterweights. BP Plc. reported adjusted net income of $8.46 billion — its highest in 18 years — as exceptional refining margins lifted results far above last year’s $2.21 billion. Sanofi raised its full‑year sales and profit outlook for a second consecutive quarter, boosted by stronger demand for Dupixent, its leading therapy for skin and asthma indications; the company now expects sales to grow in the low‑teens at constant currencies, above its prior 10% projection.
Regional market moves were mixed: pan‑European, Japanese and mainland Chinese equities dipped about 1%, while Hong Kong bucked the trend, gaining roughly 1.5%. US futures pointed to declines led by a slide in Nasdaq contracts of more than 2% as investors absorbed Intel’s warning. Commodity markets were firmer: Brent crude rose about 2.5% to $118 a barrel, adding another layer of complexity for policymakers balancing growth and inflation risks.
The data highlight a euro area still navigating headwinds from elevated prices and financial‑market stress, even as pockets of strength and corporate cash flows — and high‑stakes strategic deals — reshape investor focus ahead of a potentially volatile earnings season.
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