European equities showed a mixed performance on Wednesday as investors awaited key corporate results and monitored political developments in France.
At 08:05 GMT, Germany’s DAX fell 0.2%, France’s CAC 40 gained 0.5%, and the U.K.’s FTSE 100 rose 0.2%.
Nvidia Earnings in Spotlight
Market participants were closely watching the upcoming second-quarter results from Nvidia (NASDAQ:NVDA), a central indicator of the artificial intelligence boom, scheduled after the U.S. market close. The report is expected to influence near-term investor sentiment, offering insights into whether lofty valuations for AI-driven tech stocks remain justified.
Nvidia has seen its market value surge in recent years, becoming the largest weighting in the S&P 500 and exerting significant influence over U.S. market movements. According to LSEG data, second-quarter revenue is expected to rise 53% to $46 billion, though this growth still falls short of the triple-digit increases the company achieved in previous quarters.
French Politics Under the Microscope
Attention also remained on France, where Prime Minister François Bayrou is projected to lose a confidence vote on his debt-reduction plan next month, potentially cutting short his tenure leading a minority government. Should Bayrou fall, President Emmanuel Macron could either dissolve parliament for fresh elections or form a new government, though neither option is likely to resolve France’s budget challenges or political deadlock.
The CAC 40 edged higher on Wednesday but remains down more than 3% this week. Meanwhile, the spread between French and German 10-year government bond yields, a measure of the risk premium for holding French debt, hovered near its highest level since April.
In Germany, consumer sentiment is expected to decline for the third consecutive month in September, with the GfK index projected at -23.6 points, down from a revised -21.7 points in August.
Corporate Updates
JD Sports Fashion (LSE:JD.) reported a steeper drop in Q2 underlying sales, pressured by weakness in the U.K., though its U.S. business showed signs of stabilizing after a sharp prior-quarter decline.
Rio Tinto (LSE:RIO) announced plans to consolidate operations into three divisions—Iron Ore, Aluminium & Lithium, and Copper—aiming to simplify its structure and concentrate on the most profitable assets.
Hochschild Mining (LSE:HOC) cut its full-year gold output forecast following disappointing production from its Mara Rosa mine in Brazil, now expecting 35,000–45,000 ounces from the site in 2025, less than half the prior estimate of 94,000–104,000 ounces.
Oil Prices Steady After Sharp Decline
Crude futures stabilized following heavy losses in the previous session, as markets weighed new U.S. tariffs on India, the world’s third-largest crude consumer. At 04:05 ET, Brent crude was down 0.1% at $66.67 a barrel, while U.S. West Texas Intermediate rose 0.1% to $63.27 a barrel. Both contracts had fallen more than 2% on Tuesday after starting the week near a two-week high.
The U.S. doubled tariffs on goods from India to as much as 50%, citing India’s continued purchases of Russian oil, taking effect Wednesday. Investors are also tracking developments in the Ukraine conflict, with U.S. special envoy Steve Witkoff scheduled to meet Ukrainian representatives in New York this week.
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