European equities traded mostly higher on Thursday as falling oil prices and softer U.S. inflation data supported risk appetite. Expectations of weaker global energy demand pushed crude prices lower, while the latest U.S. inflation figures reduced concerns that the Federal Reserve could raise interest rates in the near term. The U.K. market underperformed its continental peers, however, as energy stocks declined and investors assessed slower British economic growth.
UK economy slows in the second quarter
Sterling came under pressure following official figures showing that economic growth in the U.K. moderated during the second quarter.
Real gross domestic product expanded 0.4% quarter on quarter, according to the Office for National Statistics, slowing from growth of 0.6% during the opening three months of the year. The quarterly figure was in line with economists’ expectations.
On an annual basis, the economy grew 1.2%, slightly stronger than the 1.1% expansion forecast by economists.
The slowdown nevertheless weighed on the pound as investors considered the implications for the outlook for the British economy.
STOXX 600 advances while FTSE 100 falls
The pan-European STOXX 600 Index gained around 0.2%, recovering after declining 0.2% on Wednesday.
Germany’s DAX advanced approximately 0.4%, while France’s CAC 40 added 0.1%.
The U.K.’s FTSE 100 moved in the opposite direction, falling around 0.3% as weakness among major energy companies weighed on the index.
Lower oil prices were a particular drag on London’s heavyweight energy sector, offsetting gains elsewhere in the market.
Costain and Rank Group rally after results
Costain Group (LSE:COST) shares moved sharply higher after the British infrastructure company delivered strong first-half results and reaffirmed its guidance for the full year.
Rank Group (LSE:RNK), which owns Grosvenor Casinos and Mecca Bingo, also recorded a substantial gain after reporting a 21% increase in underlying profit for the financial year ended June 30, 2026.
The results provided further company-specific support to parts of the U.K. market despite the broader decline in the FTSE 100.
Sixt, Thyssenkrupp and Maersk gain
In continental Europe, Sixt (TG:A46Z70) shares climbed after the German car rental company reported record revenue for the first half.
Thyssenkrupp (TG:TKA) also advanced after the steel and industrial technology group increased the lower end of its 2026 profit guidance.
Maersk (TG:DP4A) was another notable riser after the Danish shipping company raised its full-year outlook following a sharp increase in second-quarter profit.
Pandora (LSE:0FND) shares also strengthened after the jewellery group upgraded its 2026 expectations for organic growth and profit margin.
BP and Shell retreat as oil prices weaken
Energy stocks were among the main laggards as crude oil prices pulled back from their recent highs.
BP Plc (LSE:BP.) and Shell (LSE:SHEL) both declined as investors reacted to expectations of weaker global oil demand during the year.
The retreat in crude prices followed a recent rally and added pressure to the energy-heavy FTSE 100.
Antofagasta falls after mixed first-half update
Antofagasta (LSE:ANTO) shares also moved sharply lower following a mixed set of first-half results from the Chilean copper producer.
The company reported a substantial increase in first-half profit, benefiting from supportive commodity-market conditions.
However, Antofagasta reduced its copper production forecast for 2026, overshadowing the stronger earnings performance and weighing on the shares.
Overall, European markets remained supported by easing concerns over U.S. monetary tightening and lower energy prices, although weaker oil stocks and slower U.K. economic growth left London trailing the major continental indices.
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