European stocks retreat as banks slide

The STOXX Europe 600 index had fallen 0.84% to 639.05 points by 07:12 UTC. 

The banking sector index declined 2.1%, while Barclays lost 2.5% and Hermès dropped 6.7%. Nestlé shares, however, gained 2.3% following stronger-than-expected organic sales growth.

The decline reflected a combination of company results and a more than 2% increase in oil prices. Higher energy costs pose risks to corporate profitability and inflation expectations across Europe. Political uncertainty and fiscal concerns in France added to investor caution. The broad-based weakness suggests that European equities could remain vulnerable to near-term volatility.