European markets traded broadly higher on Wednesday, supported by signs of easing geopolitical strain and fresh reports suggesting a potential leadership change at the European Central Bank.
According to the Financial Times, ECB President Christine Lagarde is considering stepping down before the end of her eight-year term, which is due to run through October 2027.
In currency markets, the British pound slipped below $1.36 after new figures showed U.K. inflation cooled to a ten-month low in January, bolstering expectations that the Bank of England could begin cutting rates as early as March.
Data from the Office for National Statistics showed consumer prices rose 3.0% year over year, in line with forecasts. That marked the slowest pace since March 2025, when inflation stood at 2.6%, and followed a 3.4% annual increase in December.
In France, annual consumer price growth also moderated, easing to 0.4% in January and matching the preliminary estimate released earlier this month.
By midday, the U.K.’s FTSE 100 was higher by 1.0%, Germany’s DAX had gained 0.8%, and France’s CAC 40 was up 0.3%.
Among individual stocks, defense contractor BAE Systems (LSE:BA.) rallied strongly after posting a 12% increase in full-year operating profit that exceeded expectations and announcing higher shareholder returns.
Commodity giant Glencore (LSE:GLEN) also climbed despite reporting a decline in annual earnings.
Swiss dental implant specialist Straumann Holding (TG:QS51) jumped after surpassing fourth-quarter sales forecasts and guiding for high single-digit percentage revenue growth in 2026.
On the downside, Carrefour (EU:CA) fell after Europe’s largest food retailer reported lower operating profit for 2025, citing costs related to recent acquisitions.
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