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European Equities Expected to Decline Amid Weaker Retail Sales and Uncertainty

Strategic Insights

— 2 min read

The European stock market is poised for a decline, with London's blue-chip index predicted to fall as investors assess the impact of weaker-than-expected UK retail sales growth in September and await the latest unemployment figures. The UK's annual retail sales growth decelerated in September, according to data published by the British Retail Consortium and KPMG, with total sales growth slowing to 2.3% in September from 3.1% in August. Food sales growth decelerated to 4.3% in September from 4.7% in August, while non-food sales were up 0.7% in September, down from 1.8% in August.

Key Takeaways:

  • The FTSE 100 index is expected to decline by 0.3% at 9,414.87.
  • The UK's annual retail sales growth slowed to 2.3% in September, down from 3.1% in August.
  • Food sales growth decelerated to 4.3% in September, down from 4.7% in August.
  • Non-food sales were up 0.7% in September, down from 1.8% in August.
  • The UK's unemployment figures will be released later in the day.
  • The Bank of England's Monetary Policy Committee member Alan Taylor will speak at 13:00 BST.
  • The Bank of England's Governor Andrew Bailey will speak at 18:00 BST.
  • Samsung Electronics has issued positive guidance for the third quarter of 2025, with operating profit expected to increase 32% to KRW12.10 trillion.
  • JPMorgan Chase has announced a USD1.5 trillion initiative to promote US "critical industries," including rare minerals, shipbuilding, and nuclear energy.
  • Goldman Sachs has entered into an agreement to acquire Industry Ventures, a venture capital platform, for up to USD965 million.
  • Givaudan reported weaker sales in the third quarter of 2025, with reported sales declining 1.5% to CHF1.88 billion.
  • Michelin has cut its free cash flow outlook to between EUR1.5 and EUR1.8 billion, down from above EUR1.7 billion.

Statistics:

  • The FTSE 100 index is expected to decline by 0.3%.
  • The UK's annual retail sales growth slowed to 2.3% in September.
  • Food sales growth decelerated to 4.3% in September.
  • Non-food sales were up 0.7% in September.
  • Samsung Electronics' operating profit is expected to increase 32% to KRW12.10 trillion.
  • JPMorgan Chase's USD1.5 trillion initiative will focus on promoting US "critical industries."
  • Goldman Sachs' acquisition of Industry Ventures is valued at up to USD965 million.
  • Givaudan's reported sales declined 1.5% to CHF1.88 billion.
  • Michelin's free cash flow outlook has been cut to between EUR1.5 and EUR1.8 billion.

Sources:

  • Alliance News: European equities expected to decline amid weaker retail sales and uncertainty
  • British Retail Consortium: UK retail sales growth decelerated in September
  • KPMG: UK retail sales data for September
  • Samsung Electronics: Guidance for the third quarter of 2025
  • JPMorgan Chase: USD1.5 trillion initiative to promote US "critical industries"
  • Goldman Sachs: Acquisition of Industry Ventures
  • Givaudan: Reported sales for the third quarter of 2025
  • Michelin: Cut its free cash flow outlook

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