European stock markets closed lower Thursday as investors continued to digest more corporate earnings.
The pan-European Stoxx 600 index closed 0.2% lower, with telecoms shares down 1.1% and autos falling 3.7%.
The autos decline follows Tesla’s results, which showed a fall in net income, and the company’s announcement of further price cuts. CEO Elon Musk made clear he was willing to sacrifice margins in a push for market share in statements Wednesday, sending Tesla shares lower.
Renault shares were down 8% after it reported a 29.9% rise in revenues for the first quarter, ahead of an analyst consensus, and reaffirmed its 2023 outlook.
Sweden’s Volvo initially fell as much as 6.1% as it said its adjusted operating income rose to 18.4 billion Swedish krona ($1.7 billion) from 12.6 billion krona. The carmaker pared losses later in the afternoon to close 1% higher. It also raised its outlook for the European and North American heavy-duty truck markets as it said supply chain disruptions in Europe had eased.
Investors are also considering the outlook for interest rates, after U.K. inflation unexpectedly held above 10% in March and wage rises slowed by less than expected. European Central Bank policymakers have also made clear they do not see their work on inflation as done.
U.S. stocks dropped on Thursday as Wall Street appraised a mixed bag of corporate earnings, including the disappointing results from Tesla.