European equity markets fell on Thursday as investors weighed escalating geopolitical risks in the Middle East against a busy stream of corporate earnings updates.
The FTSE 100 declined 0.4%, while Germany’s DAX and France’s CAC 40 each dropped 1.1% as selling pressure spread across the continent.
Losses on the FTSE 100 were partially offset after official data showed the UK economy returned to growth in May, recovering from a brief contraction the previous month.
The Office for National Statistics reported that UK gross domestic product expanded by 0.1% in May, reversing the 0.1% decline recorded in April, which had marked the first monthly contraction since October 2025.
On an annual basis, the UK economy grew 1.3% in May, providing some reassurance about the underlying health of the economy.
Despite the GDP recovery, sterling weakened against the US dollar after reports suggested Home Secretary Shabana Mahmood is the leading candidate to become the UK’s next Chancellor.
Among the most significant corporate stories, Delivery Hero (TG:DHER) fell after Uber Technologies (NYSE:UBER) formally launched a public takeover offer valuing the German food delivery company at €41.50 per share.
TotalEnergies (LSE:TTE) also came under pressure after the French energy group said conflict in the Middle East had reduced its second-quarter production by approximately 210,000 barrels of oil equivalent per day.
Experian (LSE:EXPN) traded lower after reaffirming its full-year outlook without upgrading guidance, disappointing investors who had anticipated a more positive update.
Ocado (LSE:OCDO) lost ground after announcing additional delays to two automated fulfilment centres currently under development, adding to concerns about the company’s operational timeline.
Mining giant BHP (LSE:BHP) weakened after reporting a 5% decline in fourth-quarter copper production, reflecting broader headwinds facing the mining sector.
ABB (TG:ABB) moved lower after announcing its $5.5 billion acquisition of British automation specialist Rotork, while Rotork shares surged sharply on news of the agreed takeover.
Against the broader downward trend, Publicis Groupe (EU:PUB) stood out by advancing after posting robust second-quarter results and raising its full-year guidance.
German chemicals producer BASF (TG:BAS) also gained after increasing its outlook for full-year EBITDA before special items, bucking the negative sentiment weighing on European markets.