European equities moved modestly higher on Wednesday as investors assessed another batch of corporate results alongside data showing a marked slowdown in U.K. inflation.
At 08:15 GMT, Germany’s DAX climbed 0.7%, France’s CAC 40 added 0.5%, and London’s FTSE 100 rose 0.5%.
Earnings season supports sentiment
Markets in Europe took cues from slight overnight gains on Wall Street, despite ongoing debate about stretched valuations tied to artificial intelligence and its broader economic implications.
The quarterly reporting season remains central to investor sentiment. So far, results have been broadly encouraging: roughly 60% of European companies have exceeded earnings forecasts, compared with a historical average of 54% beating expectations in a typical quarter, according to LSEG data.
Among individual movers, miner Glencore (LSE:GLEN) posted a decline in full-year earnings, as elevated copper prices were insufficient to counter weaker profits from its coal division.
Defense contractor BAE Systems (LSE:BA.) increased shareholder returns after booking record defense orders, supported by rising military expenditure across Europe and the United States.
Straumann Group (TG:QS51) topped fourth-quarter revenue forecasts and reported margins consistent with guidance. However, the dental implants maker flagged ongoing weakness in China and warned that currency headwinds could weigh on reported earnings in 2026.
Castellum (AMEX:CTM) swung to a net loss in the fourth quarter due to negative property revaluations, although the Nordic real estate group continued to grow income from property management operations.
U.K. inflation eases
Fresh data showed Britain’s annual inflation rate slowed in January to its lowest level since March of last year, strengthening expectations of a rate cut from the Bank of England in the coming month.
Consumer prices increased 3.0% year over year, down from 3.4% in December, according to the Office for National Statistics.
While inflation remains above the BoE’s 2% target, policymakers anticipate a sharper decline toward that level in April, as last year’s increases in utility bills and other regulated tariffs drop out of the annual comparison.
Market participants largely expect the central bank to lower its benchmark rate to 3.5% in March, following a narrowly split decision in February to leave rates unchanged.
In France, inflation also moderated, with consumer prices rising 0.4% annually in January compared with 0.7% the previous month.
Oil prices rebound
Crude prices ticked higher on Wednesday after steep losses in the prior session, as reports of progress in U.S.-Iran nuclear negotiations reduced concerns about potential supply disruptions.
Brent futures rose 0.5% to $67.74 per barrel, while U.S. West Texas Intermediate crude gained 0.5% to $62.54 per barrel. On Tuesday, Brent had fallen nearly 2% and WTI dropped 1%.
According to reports, Washington and Tehran reached agreement on key “guiding principles” during talks on Tuesday, fueling hopes of a deal that could ultimately allow more Iranian oil onto global markets.
The discussions are closely monitored by energy traders, given Iran’s status as a significant oil producer and its position along the Strait of Hormuz, a critical chokepoint through which about one-fifth of global oil consumption flows daily.
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