European Stocks Climb Amid Earnings Wave and Trade Uncertainty
European stock markets advanced on Thursday, as investors processed a steady stream of corporate earnings while monitoring ongoing trade negotiations.
As of 03:15 ET (07:15 GMT), Germany’s DAX index was up 0.7%, France’s CAC 40 gained 1.2%, and the U.K.’s FTSE 100 rose by 0.4%.
Markets across Europe have been cautious this week following U.S. President Donald Trump’s announcement of new 30% tariffs on imports from the European Union, set to begin in August.
In a Wednesday interview, Trump indicated that a trade deal with India was nearly finalized and suggested a potential agreement with the EU could also be within reach.
Meanwhile, EU trade commissioner Maros Sefcovic traveled to Washington on Wednesday to discuss the proposed tariffs.
Earnings Highlights: Publicis, Novartis, Volvo, and More
A flurry of corporate earnings reports on Thursday gave investors plenty to digest.
- Publicis (EPA:PUBP) raised its full-year organic growth forecast after reporting stronger-than-anticipated Q2 results.
- Novartis (SIX:NOVN) saw net income surge 24% in Q2, driven by robust U.S. sales of key therapies like Kisqali and Entresto.
- Volvo Car (ST:VOLCARb) reported a sharp drop in adjusted operating profit for Q2, blaming weak demand amid ongoing tariff impacts.
- Nordea Bank (ST:NDASE) posted a 6% decline in Q2 net profit, citing pressure from lower interest rates and market volatility.
- ABB (ST:ABB) reported record-high quarterly order intake, boosted by strong demand from the U.S. and increased investment in AI-related data center equipment.
Outside Europe, Taiwan Semiconductor Manufacturing (NYSE:TSM) exceeded earnings forecasts with a notable rise in Q2 net profit, reflecting continued momentum from demand for AI chips.
Investors are also awaiting key U.S. earnings later Thursday, including results from streaming giant Netflix (NASDAQ:NFLX).
Inflation and Labor Data in Focus
Markets are awaiting the final release of eurozone CPI data for June, which is expected to confirm a 2.0% annual inflation rate—up from 1.9% the previous month.
Separately, U.K. data released earlier showed that annual wage growth (excluding bonuses) came in slightly above expectations at 5.0% for the three months to May, although broader indicators pointed to a cooling labor market.
Oil Prices Steady After Recent Declines
Crude oil prices stabilized Thursday after three consecutive down sessions, supported by upbeat economic data from major oil consumers.
At 03:15 ET, Brent crude edged down 0.1% to $68.44 per barrel, while U.S. WTI crude was mostly unchanged at $66.38.
China’s recently released economic figures showed stronger-than-expected growth, boosting sentiment. Additionally, U.S. oil inventories dropped by 3.9 million barrels last week, according to the EIA—far exceeding forecasts and pointing to tighter supply and improved demand from refineries.
