European stock markets recorded modest gains on Wednesday as investors assessed a fresh batch of quarterly corporate earnings ahead of closely watched eurozone inflation data later in the day.
By 03:02 ET (08:02 GMT), Germany’s DAX was up 0.2%, France’s CAC 40 advanced 0.4%, and the U.K.’s FTSE 100 added 0.3%, reflecting cautious optimism across regional markets.
Earnings season continues as UBS stands out
The sharp sell-off in precious metals seen late last week has now eased, allowing investors to refocus on the ongoing earnings season. Several major European companies are reporting results this week, keeping stock-specific moves in the spotlight.
UBS delivered a standout performance, posting a 56% jump in net profit that beat forecasts, driven by strong results in its wealth management and investment banking units. The world’s largest wealth manager also said it plans to repurchase at least $3 billion worth of shares in 2026, matching last year’s buyback, while signaling scope to increase the program further.
GSK projected slower sales growth in 2026 in its first outlook under new CEO Luke Miels, as the drugmaker prioritizes pipeline expansion to offset upcoming patent expiries on its leading HIV treatments.
Novartis forecast a low single-digit percentage decline in operating profit in 2026, with results weighed down by competition from lower-cost alternatives to established drugs such as Entresto.
Banco Santander reported a 12% rise in attributable profit for 2025, marking a fourth consecutive year of record earnings as strong interest income and fee generation supported performance.
Meanwhile, Credit Agricole said fourth-quarter net income fell 24%, as a sizeable first-time consolidation charge related to its Banco BPM stake overshadowed record full-year revenues and a proposed dividend increase.
Attention later on Wednesday also turns to Wall Street, with earnings due from Alphabet after the market close. Investors will be watching closely for updates on 2026 spending plans, cloud demand, and constraints linked to artificial intelligence capacity.
Eurozone inflation data in focus
Beyond corporate results, markets are awaiting preliminary eurozone inflation figures for January, due later Wednesday, ahead of the European Central Bank’s policy decision a day later. Consumer price growth is expected to have eased slightly to 1.7% year-on-year, remaining below the ECB’s 2% target.
The ECB is widely expected to keep interest rates unchanged at 2% for a fifth consecutive meeting. However, a significant deviation in inflation data could complicate the outlook, particularly after policymakers recently flagged concerns over the euro’s rapid appreciation against the dollar and its potential to further suppress inflation.
Oil prices extend gains on Middle East tensions
Oil prices edged higher on Wednesday, supported by fears that escalating tensions between the United States and Iran could disrupt supplies from the Middle East. Brent crude futures for April rose 0.1% to $67.40 a barrel, while U.S. West Texas Intermediate crude gained 0.2% to $63.38 a barrel. Both benchmarks had climbed nearly 2% in the previous session.
Reports this week said U.S. forces shot down an Iranian drone near a U.S. aircraft carrier in the Arabian Sea, while Iranian gunboats were seen approaching a U.S.-flagged tanker in the Strait of Hormuz. The incidents occurred just ahead of scheduled talks between Washington and Tehran, raising doubts over whether negotiations will go ahead.
