STOXX 600 Falls Over 1% as Bank Stocks Tumble, Oil Prices Climb

Europe's STOXX 600 posted its steepest decline in three weeks on Thursday, ending more than 1% lower at 637.74 points, dragged down by a 4.2% drop in the euro zone banking index — its weakest day since March. Spain's Bankinter fell 7.6% after third-quarter results showed higher rates raising deposit costs and pressuring margins. Barclays dropped 2.3% on weaker-than-expected profit and said it is cutting about 5,000 jobs, or 5% of its workforce, this year. Brent crude futures hit a five-month high on Middle East conflict, while the yield spread between French 10-year bonds and German Bunds reached a fresh 15-year high amid political uncertainty and protests in France. Hermes fell 5% on slightly weaker-than-expected quarterly revenue, weighing on the luxury index. Nestle added 1.1% on better-than-expected organic sales growth. Healthcare stocks led gainers, up 2.1%, with UCB surging 21.6% after raising its 2026 revenue growth forecast. The tech index fell 2%, with Infineon, STMicroelectronics and ASML down between 5% and 6%.