European stocks fall 1.1% as auto and telecom shares lead broad sell-off

On Friday, September 18, 2026, European stocks fell sharply, with the STOXX 600 index dropping 1.1% to 635.45 points. The decline was led by automobile and telecom shares. Volkswagen fell 5.6% after slashing its outlook, citing costs related to its Porsche stake and weak Chinese demand. Telecoms dropped 3.3%, with Airtel Africa down 11.3% on reports of a downsized London IPO. Nestle fell 2.6% after Russia seized its local assets. The week saw central bank decisions, including a US rate hike and a Bank of England warning. Oil prices pared losses, but energy shares still fell. The healthcare sector was the week's best performer.