European stocks moved modestly higher on Wednesday as investors assessed a fresh batch of quarterly earnings and softer inflation data from the United Kingdom.
At 03:15 ET (08:15 GMT), Germany’s DAX rose 0.7%, France’s CAC 40 gained 0.5%, and the UK’s FTSE 100 advanced 0.5%.
Earnings season supports European equities
European markets drew some support from mild overnight gains on Wall Street, even as concerns persist about elevated valuations tied to artificial intelligence and its broader economic impact.
The corporate earnings season remains a central focus. According to LSEG data, around 60% of European companies have beaten earnings expectations so far this quarter, above the typical 54% average seen in previous reporting periods.
Among individual stocks, Glencore reported lower full-year earnings. Record-high copper prices were not enough to offset weaker profits from its coal operations.
Meanwhile, BAE Systems increased shareholder payouts after defense orders reached record levels, supported by rising military spending across Europe and the United States.
Straumann Group exceeded fourth-quarter sales forecasts and delivered margins in line with guidance. However, the company flagged continued weakness in China and warned that currency headwinds could weigh on reported earnings in 2026.
Nordic property firm Castellum posted a fourth-quarter net loss due to negative property revaluations, although income from property management continued to increase.
UK and France inflation data in focus
UK inflation cooled sharply in January, strengthening expectations of a potential interest rate cut by the Bank of England next month.
According to the Office for National Statistics, consumer prices rose 3.0% year-on-year, down from 3.4% in December. Although inflation remains above the BoE’s 2% target, the central bank expects a sharper slowdown in April as last year’s increases in utility bills and regulated tariffs drop out of annual comparisons.
Markets widely anticipate the BoE will lower its benchmark interest rate to 3.5% in March following a narrow vote to keep borrowing costs unchanged in February.
In France, inflation also eased. Data from INSEE showed consumer prices rose 0.4% year-on-year in January, down from 0.7% in December.
Oil prices recover on US–Iran talks
Oil prices edged higher after steep losses in the previous session. Brent crude futures gained 0.5% to $67.74 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 0.5% to $62.54 per barrel.
Brent had fallen nearly 2% on Tuesday, and WTI dropped 1%, as markets reacted to developments in U.S.–Iran nuclear negotiations. Reports indicated that Washington and Tehran reached an understanding on key “guiding principles,” raising hopes of a potential agreement that could eventually increase Iranian oil supply.
Energy markets are closely monitoring the talks because Iran is a significant oil producer located near the Strait of Hormuz, a critical route through which roughly 20% of global oil consumption passes each day.
