European stocks moved in different directions on Thursday as investors assessed a fresh wave of corporate earnings, easing trade tensions between major economies, regional economic data, and an upcoming policy decision from the European Central Bank (ECB).
By 08:05 GMT, Germany’s DAX was up 0.1%, while France’s CAC 40 fell 0.5%, and the UK’s FTSE 100 also slipped 0.5%.
Trade optimism tempered by caution
Markets reacted to the outcome of a meeting between U.S. President Donald Trump and Chinese President Xi Jinping earlier in South Korea. Trump hailed the discussion as “amazing”, announcing a one-year deal on rare earths and critical minerals and a cut in fentanyl-related tariffs to 10%.
However, the lack of concrete details and Trump’s inconsistent messaging on China led investors to remain cautious about how durable the progress might be.
Central banks in focus: Fed cuts, ECB expected to pause
The U.S. Federal Reserve on Wednesday lowered interest rates by 25 basis points to a range of 3.75%–4.00%, marking its third cut of 2025. Chair Jerome Powell signaled a pause ahead, saying another reduction was “far from a foregone conclusion.”
Attention now shifts to Europe, where the ECB is expected to hold rates steady at 2%, following comments from President Christine Lagarde that the bank was “in a good place.”
Investors are also awaiting German inflation data and eurozone GDP figures, which are likely to confirm sluggish third-quarter growth.
Corporate updates: energy, autos, and banks
Earnings remained in focus, with several major European companies reporting results:
- Shell (LSE:SHEL) posted a Q3 profit of $5.3 billion, up from $3.6 billion in the previous quarter, driven by stronger trading, higher volumes, and favorable tax effects.
- Volkswagen (TG:VOW3) reported a €1.3 billion operating loss, weighed down by U.S. tariffs and restructuring costs at Porsche.
- Société Générale (EU:GLE) beat earnings forecasts thanks to cost savings and steady revenue growth, though it held off announcing a new buyback.
- Stellantis (BIT:STLAM) saw revenues rise 13% year-on-year, ending a seven-quarter decline.
- Puma (TG:PUM) said it will cut 13% of its global workforce (900 jobs) by 2026 amid weak sales.
- Carlsberg (LSE:0AI3) reported slightly weaker Q3 sales but reaffirmed its full-year guidance, citing a challenging consumer environment.
Investors are also monitoring Big Tech earnings in the U.S., with Alphabet, Meta, and Microsoft reporting later in the day.
Oil prices remain under pressure
Crude prices slipped despite improved trade sentiment. Brent crude fell 0.9% to $63.76 per barrel, while WTI dropped 0.9% to $59.93. Both benchmarks are set for monthly losses of over 3%, extending their decline for a third consecutive month.
Attention now turns to the OPEC+ meeting on November 2, where the alliance is expected to confirm a 137,000-barrel-per-day supply increase for December.
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