European markets struggled for clear direction on Wednesday morning, with investors positioning cautiously ahead of the release of closely watched U.S. labor market data later in the day.
By 09:12 GMT, the STOXX Europe 600 was down 0.1%. Germany’s DAX slipped 0.2%, while France’s CAC 40 fell 0.4%. In contrast, the U.K.’s FTSE 100 advanced 0.4%.
Earnings in focus across Europe
Corporate results continued to shape trading sentiment across the region.
Koninklijke Ahold Delhaize N.V. (EU:AD) climbed after reporting fourth-quarter net sales of €23.5 billion, representing a 6.1% increase at constant exchange rates. Comparable sales excluding fuel rose 2.5%.
Heineken N.V. (EU:HEIA) announced plans to cut up to 6,000 jobs globally and signaled slower profit growth this year relative to 2025 amid soft demand. Shares nonetheless edged higher following the update.
TotalEnergies SE (EU:TTE) said it would reduce share buybacks by 62% in the current quarter due to weaker oil and gas prices. Analysts broadly endorsed the company’s more cautious stance, and the stock gained 1.4%.
In Germany, Siemens Energy AG (TG:SIE) jumped more than 5% after first-quarter net profit nearly tripled, supported by strong AI-related demand for gas turbines and grid infrastructure.
Across the Atlantic, Ford Motor Company (NYSE:F) shares ticked up in after-hours trading after the automaker issued profit and cash flow guidance above expectations, despite absorbing a $900 million impact from a delay in tariff relief measures introduced under President Donald Trump.
Other major U.S. names reporting Wednesday include Cisco Systems, Inc., McDonald’s Corporation, and T-Mobile US, Inc..
Spotlight on U.S. labor market data
Market attention is now turning to U.S. employment figures scheduled for release at 08:30 ET, following a previous delay.
Economists expect the report to show that approximately 66,000 jobs were added in January, compared with 50,000 in December.
At its most recent meeting, the Federal Reserve characterized the labor market as “stabilizing” after earlier signs of softness. Combined with persistently elevated — though steady — inflation, this assessment prompted policymakers to leave interest rates unchanged at 3.5% to 3.75%.
However, White House economic adviser Kevin Hassett recently cautioned that advances in artificial intelligence could weigh on job growth in the months ahead, even as productivity improves.
The broader outlook for 2026 remains uncertain given ambiguity around both employment and inflation — the Fed’s two core mandates. In addition to the jobs report, Friday’s consumer price index data may offer further insight into the likely path of interest rates.
“[E]quities don’t want to see a collapse in payrolls, but with Corporate America increasingly preaching about efficiencies and productivity enhancements, it’s expected that job creation will remain tepid going forward,” analysts at Vital Knowledge wrote.
Oil rebounds amid geopolitical uncertainty
Oil prices moved higher as traders monitored developments in U.S.–Iran relations and assessed travel demand ahead of a major Chinese holiday.
Crude recovered part of Tuesday’s losses, aided by a softer dollar ahead of key U.S. economic releases.
Brent futures rose 1.4% to $69.74 per barrel, while West Texas Intermediate gained 1.5% to $64.90.
Iranian officials said nuclear talks with the U.S. had allowed Tehran to evaluate Washington’s seriousness and indicated that diplomatic engagement would continue. The comments followed discussions last week over Iran’s nuclear program, after President Trump dispatched additional warships to the Middle East.
Although both sides cited progress, tensions resurfaced after the U.S. issued a warning to vessels transiting the Strait of Hormuz. Reports also suggested that Trump is weighing the deployment of a second aircraft carrier near Iran, potentially escalating regional strains.
The evolving situation has prompted traders to factor in a geopolitical risk premium, amid concerns that any military confrontation could disrupt Iranian oil exports.
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