Stocks fall in Europe as automakers weaken; Spanish equities at over one-week low

European stocks slipped on Monday, pressured by automakers despite gains in tech and mining, while Madrid's benchmark closed at its lowest in over a week.

The pan-European STOXX 600  fell as much as 0.4% before closing 0.1% lower, weighed down by defensive stocks such as Unilever  and Nestle .

Spanish banks dragged Madrid's benchmark  1.2% down to its lowest since September 10.

Porsche  sank over 8%, its worst performance in nearly three years, after the carmaker warned of delays in electric vehicle rollouts and trimmed its 2025 outlook. It helped to send the autos index  to an over one-month low.

"The re-basing of (Porsche's) guidance may be the last but leaves the turnaround a drawn-out affair with product cycle and brand challenges," Jefferies analysts said in a note.

Shares of Porsche-parent Volkswagen , which also cut its 2025 profit outlook, fell 7.1%.

Euro zone banks  dipped 0.9%, with Spain's Sabadell  down 3.9% after bigger rival BBVA  said it raised its bid for the bank by 10% to 3.39 euros per share. BBVA also fell 2.6%.