European equity markets opened with slight gains on Thursday, supported by strength in the energy sector amid a flood of quarterly earnings reports and escalating geopolitical tensions.
By 07:05 GMT, Germany’s DAX was up 0.1%, France’s CAC 40 gained 0.2% and the U.K.’s FTSE 100 rose 0.4%.
Trump sanctions Russian oil majors
U.S. President Donald Trump announced new sanctions against Russia’s largest oil companies, Lukoil and Rosneft, with his administration citing Moscow’s “lack of serious commitment to a peace process to end the war in Ukraine.”
Treasury Secretary Scott Bessent said the companies funded “the Kremlin’s war machine,” adding that the Treasury was prepared to impose further measures if necessary. This represents a shift in Trump’s policy toward Moscow, as no direct sanctions had been introduced during his second term until now.
The move has raised concerns over a reduction in global oil supply, pushing benchmark prices sharply higher and lifting European energy stocks. Brent futures climbed 3.1% to $64.54 a barrel, while U.S. West Texas Intermediate crude rose 3.3% to $60.43.
U.S.-China trade tensions limit gains
However, the upside was capped as investors continued to focus on the tense relationship between Washington and Beijing, amid fears of an escalating trade war between the two largest economies. According to Reuters, Trump’s administration is weighing restrictions on a broad range of technology exports to China — including laptops, jet engines, and other high-tech goods — in response to Beijing’s latest rare earth export curbs.
Trump and Chinese President Xi Jinping are expected to meet in South Korea next week, and while the U.S. president has sounded optimistic, he acknowledged that “a meeting may not take place.”
European earnings in focus
Corporate results across the continent are also driving market sentiment. Unilever (LSE:ULVR) reported better-than-expected third-quarter underlying sales growth, helped by strong demand for beauty products in North America and emerging markets.
Lloyds Banking Group (LSE:LLOY) posted a 36% decline in third-quarter profit and cut its full-year guidance due to an £800 million charge tied to a motor-finance mis-selling scandal.
Finland’s Nokia (NYSE:NOK) delivered quarterly earnings well above expectations, supported by robust demand in optical and cloud services, as well as sales to AI data centers following its acquisition of Infinera.
French defense and aerospace company Thales (EU:HO) posted a 9% sales increase in the first nine months of 2025, reaffirming its financial targets.
Catering group Sodexo (EU:SW) issued a weaker 2026 growth forecast, citing persistent headwinds in its U.S. business.
Chipmaker STMicroelectronics (BIT:STMMI) reported a 32% drop in third-quarter net income due to weaker automotive and industrial demand, though it expects a slight sequential revenue uptick in Q4.
Dassault Systèmes (EU:DSY) saw earnings and margins expand but trimmed its 2025 revenue guidance on softer segment growth.
Tesla kicks off U.S. tech earnings season
Wall Street is also preparing for key results from Tesla, Inc. (NASDAQ:TSLA), the first of the so-called “Magnificent Seven” to report.
The electric vehicle maker’s quarterly profit fell short of expectations, pressured by tariffs, R&D costs, and lower income from regulatory credits. Revenue, however, beat forecasts, supported by record vehicle sales as U.S. customers rushed to claim a tax credit before its expiration last month.
Tesla’s performance is seen as an early indicator for the broader tech sector rally. The rest of the group — Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Alphabet Inc. (NASDAQ:GOOGL) — are set to publish their earnings in the coming days.
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