European stocks edged higher on Thursday, supported by strong gains in the energy sector on a day packed with major corporate earnings reports and fresh geopolitical developments.
At 07:05 GMT, Germany’s DAX rose 0.1%, France’s CAC 40 gained 0.2%, and the U.K.’s FTSE 100 advanced 0.4%, as investors balanced upbeat earnings with renewed global tensions.
Trump Sanctions Russia’s Oil Majors
U.S. President Donald Trump announced sanctions on Russia’s top oil producers, Lukoil and Rosneft, accusing Moscow of showing “no serious commitment” to ending the Ukraine war. Treasury Secretary Scott Bessent said both companies had “funded the Kremlin’s war machine” and warned that Washington was prepared to impose additional measures.
The sanctions represent a sharp policy shift for Trump, who had previously avoided direct penalties on Russia in his second term. The move is expected to disrupt global oil supplies, driving prices higher and boosting European energy stocks.
Brent crude rose 3.1% to $64.54 per barrel, while U.S. WTI climbed 3.3% to $60.43 per barrel, easing fears of oversupply.
U.S.–China Tensions Weigh on Sentiment
Market gains were tempered by renewed anxiety over U.S.–China trade relations. Reports suggest the Trump administration is weighing new restrictions on software-powered exports — including laptops, jet engines, and high-tech components — in retaliation for Beijing’s rare earth export curbs.
Trump and Chinese President Xi Jinping are expected to meet in South Korea next week, though Trump cautioned the meeting “may not take place.” Investors fear that stalled talks could reignite a trade war between the world’s two largest economies.
Corporate Earnings in Focus
A wave of European earnings reports also drove market direction.
- Unilever (LON:ULVR) exceeded sales forecasts, driven by strong beauty and personal care growth in North America and emerging markets.
- Lloyds Banking Group (LON:LLOY) saw profit drop 36% after an £800 million charge tied to the motor-finance mis-selling scandal.
- Nokia (HE:NOKIA) posted stronger-than-expected quarterly profit, supported by cloud and optical demand following its Infinera acquisition.
- Thales (EPA:TCFP) reported a 9% increase in sales for the first nine months of 2025, driven by robust aerospace and defence performance.
- Sodexo (EPA:EXHO) forecast slower revenue growth for 2026, citing headwinds in its U.S. business.
- STMicroelectronics (EPA:STMPA) reported a 32% decline in quarterly net income due to weaker demand in its automotive and industrial divisions, though it expects modest recovery ahead.
- Dassault Systèmes (EPA:DAST) posted higher profit margins but trimmed its 2025 revenue outlook, citing slower growth in certain software segments.
Tesla Kicks Off Tech Earnings Season
On Wall Street, Tesla (NASDAQ:TSLA) was the first of the “Magnificent Seven” tech giants to report results. The automaker’s quarterly profit missed estimates due to tariff costs, R&D spending, and lower income from regulatory credits.
However, revenue beat forecasts, thanks to record electric vehicle sales, as U.S. buyers rushed to claim a key tax credit before its expiration. Tesla’s performance set the stage for upcoming earnings from Microsoft, Meta, Amazon, Apple, Nvidia, and Alphabet, which could heavily influence the ongoing bull market rally.
