European Stocks Set for Weekly Loss as Kering Slumps on Gucci Weakness

European stocks edged lower Friday and headed for a weekly decline, as Kering's sharp drop and caution over political uncertainty in France and the Middle East war outweighed largely strong earnings. The pan-European STOXX 600 fell 0.23% to 636.27 points by 0840 GMT after Thursday's biggest one-day drop in three weeks, leaving the benchmark down more than 1% for the week. Kering plunged 11.2% after third-quarter sales at its flagship Gucci brand fell, pressured by the Middle East war and China's tax crackdown on the wealthy. The luxury sector, Europe's worst performer this year, dropped 1.6%. Third-quarter earnings for STOXX 600 companies are expected to grow 21.9%, up from 20.7% last week and the second-best rate in four years, according to LSEG I/B/E/S data, driven mostly by energy firms. But surging oil prices, tumbling AI stocks and concerns over social unrest in France have overshadowed that optimism, with businesses and museums planning to close at the weekend. Investors will scrutinize Moody's decision on France's credit rating, due later in the day. Among other movers, Holcim gained 5.5% and Sodexo rose 5.5%, while Volvo Cars slumped over 27% to a record low after a bigger-than-expected third-quarter operating loss and plans to cut a further 2,500 jobs. L'Oreal climbed 4%.