Markets

European Stocks Post Steepest Weekly Loss Since Early September as Asia Eyes China Plenum and Korea GDP

The STOXX 600 fell about 1.4% last week, its steepest weekly drop since early September, as global investors turn to China's Oct. 26-29 plenum, Korean and Taiwanese GDP, and ECB and BOJ decisions.

Oct 25, 2026 - 12:19

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Stock markets outside the United States ended a turbulent week on a mixed note, with European shares posting their steepest weekly decline since early September and most Asian benchmarks recovering on Friday from early losses. Investors now face a week that includes a key Chinese Communist Party meeting, third-quarter growth data from South Korea and Taiwan, and policy decisions from the European Central Bank and the Bank of Japan.

Europe: France, oil and earnings

The pan-European STOXX 600 index fell 0.31% to close at 635.77 points on Friday, October 23, 2026, leaving it down about 1.4% for the week, its steepest weekly loss since early September, Reuters reported. The agency said political tensions in France and higher oil prices had dampened optimism generated by some strong corporate earnings.

Luxury stocks led the declines. Kering fell 16.6% after third-quarter sales at its Gucci brand dropped, making it the biggest laggard on the STOXX 600, and the European luxury index lost 3.6% on the day, according to Reuters, which described the sector as the region's worst performer so far this year. Defence stocks fell 3.8%, their worst day since June 1, as French jet engine maker Safran dropped 10% following its results.

Volvo Cars slumped more than 24% to a record low after reporting a bigger-than-expected third-quarter operating loss and announcing plans to cut a further 2,500 jobs, Reuters said. AFP reported that the Swedish carmaker attributed the loss to U.S. tariffs and strong competition from local brands in China and outlined a five-billion-kronor savings plan. On the positive side, L'Oreal rose 5.6% after beating third-quarter sales forecasts, Holcim gained 5% after raising its full-year earnings forecast, and Sodexo climbed more than 6% on stronger-than-expected full-year revenue.

Asia: Friday rebound after a heavy week

In Asia, technology shares recovered some of the week's losses on Friday. Japan's Nikkei 225 slipped 0.3% to close at 62,693.16, while Hong Kong's Hang Seng Index rose 0.7% to 23,093.37 and the Shanghai Composite gained 0.9% to 3,690.48, according to AFP closing data. South Korea's Kospi rose 0.3% to 5,550 after recovering from steep intraday losses, and the Hang Seng Tech Index climbed 2.0%, Sharecast reported. China's Shenzhen Component Index jumped 2.79% and the ChiNext Index rose 4.16%, the service said.

AFP said markets were contending with surging oil prices and questions about the sustainability of artificial-intelligence spending. Brent crude traded above $115 a barrel on Friday, the agency reported.

China's plenum and Asian growth data

The Fifth Plenary Session of the 20th Communist Party of China Central Committee will be held in Beijing from October 26 to 29, Xinhua reported. In its Asia week-ahead note, ING said the focus of the meeting is likely to be political rather than economic but that markets will scrutinise the communique for new signals. China is also due to release September industrial profits.

South Korea publishes third-quarter GDP on Tuesday, October 27. ING said consensus expects annual growth to moderate to 3.2% from 3.7% in the second quarter, with quarter-on-quarter growth edging up to 0.8%. Taiwan releases its third-quarter GDP figures on Friday, October 30, for which ING forecasts 11.4% year-on-year growth. Japan will publish October Tokyo inflation, September retail sales and industrial production on Friday; consensus is for headline Tokyo inflation to hold at 2.7%, ING said.

Central banks and European earnings

The ECB meets on Thursday, October 29, and investors were pricing in more than a 91% probability that it holds rates steady, according to Reuters. The Bank of Japan concludes its two-day meeting on Friday, October 30, with ING expecting its policy rate to stay at 1.25%. Both decisions come in the same week as the Federal Reserve's announcement on Wednesday.

The European earnings calendar includes oil majors BP and Shell, Reuters noted. Shell has said its third-quarter results are scheduled for publication on October 29, according to a company update note.