European stocks advanced on Wednesday, buoyed by a fresh wave of corporate earnings that have, so far, painted a largely optimistic picture for the second quarter.
As of 07:05 GMT, Germany’s DAX rose by 0.5%, France’s CAC 40 inched up 0.1%, and the UK’s FTSE 100 climbed 0.3%. The broadly upbeat earnings momentum has offered support to regional indices, even as signs begin to emerge that trade tariffs are starting to weigh on certain companies—hinting at possible challenges ahead in the third quarter.
Corporate Results Flood In
Another busy day for European earnings saw investors digest a wide range of updates.
Novo Nordisk (NYSE:NVO) trimmed its full-year sales and profit forecasts, citing slower-than-expected growth for its weight-loss drugs Wegovy and Ozempic in key markets. Despite that, the Danish pharmaceutical firm posted strong double-digit gains for the first half of the year.
Bayer (TG:BAYN) revealed it has cut around 12,000 full-time roles as part of its ongoing restructuring efforts aimed at improving efficiency and flattening management layers.
Siemens Energy (TG:SIE), meanwhile, expressed confidence in reaching the top end of its 2025 growth targets. The company credited solid U.S. demand for power equipment and wind turbines, which helped mitigate the negative impact of trade tariffs.
Fresenius (TG:FME) lifted its full-year revenue guidance, now projecting up to 7% organic growth thanks to improved performance in its healthcare divisions.
Commerzbank (TG:CBK) reported a 14% drop in second-quarter net profit from a year earlier, blaming restructuring charges. Still, the German lender raised its full-year forecast, signaling resilience despite short-term costs.
On a more somber note, Glencore (LSE:GLEN) saw first-half adjusted earnings fall amid declining coal prices and weaker copper output. The commodity giant also posted a deeper-than-expected net loss due to a significant impairment related to its Colombian coal operations.
On the other side of the Atlantic, investors await key earnings reports later in the day from Walt Disney (NYSE:DIS), Uber Technologies (NYSE:UBER), and McDonald’s (NYSE:MCD).
Economic Focus: Retail Sales and Industrial Orders
New figures released earlier showed German industrial orders fell by 1% in June, disappointing expectations for a 1% gain and raising concerns about industrial momentum in Europe’s largest economy.
Meanwhile, eurozone retail sales data for June is due later in the session. Economists anticipate a monthly rebound of 0.4%, following a 0.7% drop in May.
In the U.S., no major economic indicators are expected Wednesday, but attention will turn to a $42 billion auction of 10-year Treasury notes. This comes after Tuesday’s weak demand for a three-year note sale, which spooked bond markets.
Oil Prices Bounce Back
Crude prices climbed on Wednesday, staging a recovery from a five-week low hit during the previous session. The gains came amid speculation that the U.S. may tighten sanctions on countries buying Russian oil.
By 03:05 ET, Brent crude futures had risen 0.9% to $68.28 per barrel, while WTI crude futures gained 0.8% to $65.69.
Tuesday saw both benchmarks slide more than $1 a barrel, their lowest close in five weeks, amid fears that a planned output increase from OPEC+ in September could exacerbate a supply glut. The losses marked a fourth straight session of declines.
Adding to the mix, former U.S. President Donald Trump threatened further tariff hikes on Indian imports, targeting New Delhi’s continued purchase of Russian crude. Just last week, India was hit with a 25% tariff; more could follow this week, he warned.
Also supporting oil prices was data from the American Petroleum Institute (API) showing a sharper-than-expected drop in U.S. crude inventories—4.2 million barrels, compared to forecasts for a 1.8 million barrel draw.
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