Shares of European automakers took a significant hit after Mercedes-Benz announced a reduction in its 2024 guidance, attributing the decision to declining sales and a weak economic outlook in China. The company's stock fell over 6% following its announcement, which highlighted challenges in the Chinese market that have impacted profits. This forecast cut compounded a broader market trend, with European indexes closing 1.5% lower after various central bank decisions. Other car manufacturers like BMW also issued warning signals regarding the impact of the Chinese market, further dragging down the sector. As European shares consolidated gains from previous days, the negative sentiment around luxury goods and automakers persisted.