European equities traded mostly higher on Thursday, with a wave of stronger-than-expected corporate results helping to counter lingering worries around a weaker dollar and rising geopolitical tensions between the U.S. and Iran.
Markets were also digesting the Federal Reserve’s decision to keep interest rates unchanged, alongside a batch of U.S. technology earnings released after Wednesday’s close.
Eurozone government bond yields were little changed, as investors weighed concerns that euro strength could eventually pressure the European Central Bank toward rate cuts.
The pan-European Stoxx 600 index rose 0.7%, rebounding from a 0.8% decline the previous session. The UK’s FTSE 100 climbed 0.9% and France’s CAC 40 gained 0.8%, while Germany’s DAX underperformed, sliding 1.0%.
In London, EasyJet (LSE:EZJ) jumped sharply after reaffirming its full-year guidance. Antofagasta (LSE:ANTO) also rallied, even after reporting a relatively modest 1.6% decline in copper output for 2025.
Banking stocks saw selective strength, with ING Groep (LSE:ING) advancing after the lender lifted its FY27 outlook, supported by a 22% jump in fourth-quarter net profit and a 7.2% increase in revenue.
In the technology space, STMicroelectronics (NYSE:STM) surged after guiding first-quarter revenue slightly above market expectations. Remy Cointreau (EU:RCO) also climbed, as third-quarter organic sales growth came in ahead of consensus.
Industrial names added to gains, with ABB (BIT:1ABB) rising after closing the year with stronger orders and record quarterly revenue.
Not all stocks participated in the rally. Hennes & Mauritz (BIT:1HMB) fell after warning of sluggish winter sales. Deutsche Bank (TG:DBK) also moved lower despite delivering its highest annual profit since 2007.
Meanwhile, SAP (TG:SAP) slumped after missing fourth-quarter earnings expectations, and Nokia (NYSE:NOK) dropped after issuing a slightly weaker-than-expected outlook for 2026.
Overall, upbeat earnings provided support for European markets, even as macroeconomic and geopolitical uncertainties continued to shape investor positioning.
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