European Stocks Trade in Tight Ranges as Investors Assess Earnings and Economic Data
European stock markets moved within narrow ranges on Wednesday as investors analyzed fresh quarterly earnings reports and regional economic data.
As of 06:20 ET (11:20 GMT), Germany’s DAX index edged down 0.1%, France’s CAC 40 slipped 0.2%, while the UK’s FTSE 100 inched up 0.1%.
Investor Caution Amid Global Trade War Concerns
European investors remained cautious following the U.S. administration’s recent imposition of 10% tariffs on Chinese imports, fueling ongoing concerns about a potential global trade war.
U.S. President Donald Trump also hinted at possible tariffs on European Union imports, stating on Monday that action on EU goods could happen “pretty soon.”
Meanwhile, geopolitical tensions in the Middle East are also under watch after Trump unexpectedly suggested that the U.S. should take control of Gaza and transform it into the “Riviera of the Middle East.”
Eurozone Business Activity Returns to Growth
Economic data showed signs of improvement in the Eurozone, with business activity rebounding after two months of contraction.
The final composite Purchasing Managers’ Index (PMI) for the region, compiled by HCOB, climbed to 50.2 in January from 49.6 in December, aligning with preliminary estimates. A reading above 50 signals growth.
While the manufacturing sector continued to struggle, the services industry provided support, posting a PMI of 51.3—slightly below December’s 51.6 but still in expansion territory.
French Industrial Production Declines in December
French industrial production dropped by 0.4% month-on-month in December, signaling weakness in the country’s manufacturing sector.
Santander Surges on Record Profits
Investors continue to assess a fresh batch of corporate earnings on Wednesday, though sentiment took a hit following disappointing results from Google parent Alphabet (NASDAQ:GOOGL), which saw profits pressured by heavy capital expenditure.
Shares of Banco Santander (BME:SAN) jumped over 6% after Spain’s largest bank posted record annual profits for the third consecutive year, driven by strong commercial performance. The bank also unveiled plans for more than $10 billion in share buybacks.
Novo Nordisk (NYSE:NVO) gained 3% despite forecasting slower sales growth for 2025 compared to 2024, hinting at increasing competition in the weight-loss drug market, where it sells the blockbuster Wegovy.
Credit Agricole (OTC:CRARY) rose 1.7% after the French lender exceeded earnings expectations, boosted by higher revenue and a strong retail banking performance. The bank also announced a dividend increase.
GSK (LON:GSK) climbed over 5% as the British pharmaceutical giant reported stronger-than-expected fourth-quarter earnings and raised its long-term sales outlook, citing progress in its late-stage drug pipeline. The company also revealed a $2 billion share buyback plan.
TotalEnergies (EPA:TTEF) saw its stock rise 1.5% after the French energy major raised its dividend, seeking to reassure investors following a drop in fourth-quarter earnings caused by weaker oil prices and narrowing refining margins.
Oil Prices Decline as U.S. Crude Inventories Rise
Crude oil prices edged lower on Wednesday after a larger-than-expected increase in U.S. stockpiles raised concerns about demand in the world’s largest oil consumer.
By 06:20 ET, U.S. crude futures (WTI) had slipped 0.8% to $72.13 per barrel, while Brent crude declined 0.7% to $75.64 per barrel.
Data from the American Petroleum Institute showed crude inventories grew by more than 5 million barrels for the week ending Jan. 31, with gasoline stockpiles also increasing by a similar amount.
Traders now await official inventory data from the U.S. Energy Information Administration, set for release later in the session.
