European stocks traded slightly higher on Wednesday as improving global risk appetite supported investor sentiment. Markets digested a wave of major corporate earnings while monitoring developments in global trade and geopolitics.
At 03:02 ET (08:02 GMT), Germany’s DAX rose 0.1%, France’s CAC 40 added 0.2%, and the UK’s FTSE 100 gained 0.5%.
Global Risk Appetite Supports European Markets
Investor confidence improved after Wall Street closed higher on Tuesday and Asian markets, including Japan, South Korea and Australia, reached record highs overnight.
Uncertainty surrounding U.S. President Donald Trump’s new global trade tariffs appeared to ease slightly. During his State of the Union address, Trump said he would continue pursuing his tariff agenda despite the Supreme Court’s recent ruling limiting his authority under the International Emergency Economic Powers Act.
However, analysts note that any additional tariffs would likely require Congressional approval, which could restrict the scope of further trade measures.
Focus Turns to Nvidia Earnings
Market optimism will be tested later in the session when Nvidia reports quarterly results after the U.S. market close. The AI-focused chipmaker, currently the world’s most valuable company, has exceeded sales expectations for 13 consecutive quarters.
According to LSEG data, Nvidia is expected to post a 62% increase in quarterly profit and a 68% jump in revenue for the period ending in January. Investors are closely watching the size of the earnings beat and any signals about future AI-driven demand.
HSBC and European Corporate Earnings in Spotlight
In Europe, earnings season remains in full swing.
HSBC, Europe’s largest lender, reported full-year profits above expectations despite a 7% decline in pretax profit. The bank also set a 2026 net interest income target that exceeded forecasts, signaling confidence following its restructuring efforts.
German utility E.ON reported 2025 earnings in line with expectations and raised its five-year investment plan to €48 billion. However, it projected lower net profit in 2026.
Italian aerospace and defense group Leonardo delivered its strongest results in three years, with new orders in its aeronautics division surging 55% and net debt nearly halved. Rising European defense spending contributed to record bookings.
Meanwhile, Diageo cut its annual sales and profit outlook for the second time in four months and reduced its dividend, citing weak demand in the U.S. and China.
Nordex exceeded fourth-quarter expectations and raised its medium-term profitability target, while Adecco posted stronger-than-expected earnings but reported weaker gross margins, raising concerns about future profitability.
German Economy Expands, Consumer Sentiment Weakens
Economic data released earlier confirmed that Germany’s economy grew by 0.3% in the fourth quarter of 2025 compared with the previous quarter, improving from flat growth in the prior three months.
However, the GfK consumer sentiment index showed that German consumer confidence is expected to deteriorate in March. The index fell to -24.7 from a revised -24.2, missing expectations for a modest improvement.
Oil Prices Stay Near Seven-Month Highs
Crude oil prices remained elevated, hovering near seven-month highs as investors monitored upcoming U.S.-Iran nuclear talks.
Brent crude rose 0.4% to $70.86 per barrel, while U.S. West Texas Intermediate (WTI) gained 0.5% to $65.93 per barrel.
Both benchmarks are close to their highest levels since early August, as the United States has increased its military presence in the Middle East ahead of diplomatic talks in Geneva. U.S. officials, including special representative Steve Witkoff and presidential adviser Jared Kushner, are set to meet Iranian representatives in hopes of reaching a new nuclear agreement.
