European Stocks Remain Stable, Tech Sector Helps Offset Losses in Automotive Industry

European stock markets remained stable on Monday, with tech stocks offsetting losses in automakers. The STOXX 600 index was unchanged, while the Spanish Ibex index fell 0.9%. Porsche shares dropped 4.7% after the luxury carmaker cut its profit forecast for 2025. Tech stocks rose 0.9%, with chipmakers ASML and ASMI advancing 2.9% and 1.9%, respectively. Fugro shares fell 11.9% after the Dutch geodata specialist withdrew its annual forecast.

European stock markets displayed mixed performance on Monday, with tech stocks offsetting losses in automakers. The STOXX 600 index remained unchanged, while the Spanish Ibex index fell by 0.9%. Porsche shares dropped 4.7% after the luxury carmaker revised its profit forecast for 2025 downward. Tech stocks, however, rose 0.9%, with chipmakers ASML and ASMI advancing 2.9% and 1.9%, respectively. Fugro shares fell 11.9% after the Dutch geodata specialist withdrew its annual forecast.

Porsche, a subsidiary of Volkswagen, announced a delay in the rollout of some electric models due to weak demand. As a result, the company expects its profit margin for this year to reach a maximum of 2%, down from a previously guided range of 5-7% Porsche shares seen 6.2% lower after delayed EV launch hits guidance^[3]. Volkswagen, Europe's top carmaker, is expected to take a 5.1 billion euro ($6 billion) hit from the far-reaching product overhaul at its 75.4%-owned subsidiary. Volkswagen cut its profit margin outlook to 2-3% from 4-5%, while Porsche SE also revised its outlook for profit after tax.

Meanwhile, the tech sector performed well, with chipmakers ASML and ASMI posting significant gains. The rise in tech stocks likely contributed to the overall stability of the European stock markets.

Euronext, the pan-European stock market operator, launched a new series of futures products for Europe's main government bonds, such as France's 10-year OAT, the German Bund, and Italian government bonds. This move aims to help investors navigate the high volatility in the European bond markets amid political uncertainty and increasing debt issuance Euronext launches new European government bond futures^[1].

The launch of these new products is part of Euronext's broader growth strategy, as highlighted by Anthony Attia, global head of derivatives at Euronext. "This initiative is central to our 'Innovate for Growth 2027' strategic plan, which aims to leverage Euronext's unique presence across the trading value chain to develop truly innovative products that meet evolving market demand," he said.

In summary, while European stock markets remained stable on Monday, mixed performance was observed across sectors. The tech sector's gains helped offset losses in automakers, particularly Porsche, which revised its profit forecast due to delays in electric model rollouts. Additionally, Euronext's launch of new government bond futures products aims to address market volatility.