Lower growth expectations in France pushes STOXX 600 index to decline

European stocks fell on Monday after French stocks received a shock following the government’s lowering of its annual economic growth expectations, while shares of auto parts maker Forvia rose after optimistic expectations and plans to reduce employment.

By 0812 GMT, the European STOXX 600 index fell 0.1%.

According to Reuters, the French main index fell 0.3%, falling from the unprecedented level it recorded on Friday after the government reduced the economy’s GDP growth forecast in 2024 to 1% from 1.4%, affected by the ongoing war in Ukraine and Gaza and the slowdown in trading partners. Big ones like Germany and China.

Among the stocks that witnessed early moves, Forvia rose 4.3% after the world’s seventh-largest auto parts supplier expected better-than-expected sales in 2024, and said it would cut 13% of its workforce in Europe over the next five years.

Electronics retailer Corez shares jumped 30.6% after Chinese e-commerce group JD.com said it was in the “very preliminary stages” of evaluating a potential bid for the British electronics retailer.

Juventus shares fell 1.3% after the Italian football club said that its net losses widened in the first half of the 2023-2024 fiscal year, as it was affected by being prevented from participating in lucrative European competitions this season due to financial irregularities.