European Stocks Weaken on Auto Warnings, H‑1B Changes

European equities opened lower and finished slightly weakened after Federal Reserve Chair Jerome Powell warned that equity prices are "fairly highly valued," dampening investor appetite and leaving U.S. futures and Asian markets soft. The autos sector led the weakness after Porsche and parent Volkswagen cut guidance and delayed EV rollouts, knocking the STOXX Europe 600 autos index to multi-week lows and sending both shares down about 7%. Broader benchmarks edged down (STOXX Europe 600 -0.1%, STOXX 50 -0.3%) amid profit warnings and caution over the global rate outlook. Policy and geopolitical moves added to the mood as President Donald Trump signaled stronger support for Ukraine and announced sweeping H‑1B visa changes that threaten tech-sector labour supply, particularly affecting India’s IT firms. Defensive trades supported miners and record gold levels, while investors await key data (Germany Ifo, Swiss sentiment, U.S. inflation) and Fed speakers for further direction.