European equities traded unevenly on Thursday as investors assessed a wave of corporate earnings while closely monitoring developments in the Middle East conflict. A senior Iranian lawmaker said Tehran has already transferred initial toll revenues from the Strait of Hormuz into the country’s central bank.
At the same time, reports indicate the Pentagon has told U.S. lawmakers that clearing naval mines allegedly deployed by Iran could take as long as six months.
Economic signals remain mixed
On the macroeconomic front, a survey revealed that business activity in the Eurozone unexpectedly fell into contraction territory in April, weighed down by higher energy costs and weaker demand in the services sector.
In the U.K., government data showed an improvement in public finances. The budget deficit narrowed in March to its lowest level for that month since 2022, according to the Office for National Statistics.
Public sector net borrowing declined by GBP 1.4 billion to GBP 12.6 billion, marking the lowest March figure in three years.
Major indices diverge
Among key European benchmarks, France’s CAC 40 rose 0.5%, while Germany’s DAX slipped 0.2% and the U.K.’s FTSE 100 fell 0.6%.
Company highlights
WH Smith (LSE:SMWH) dropped 10% after issuing a profit warning, citing a sharp decline in first-half earnings and suspending its dividend amid Middle East uncertainty.
ASOS (LSE:ASC) gained 2.3% after reporting a narrower first-half loss and reaffirming its full-year outlook.
J Sainsbury (LSE:SBRY) fell 5.2% after warning that profits could decline this year.
German automakers BMW (TG:BMW), Mercedes-Benz (TG:MBG), and Volkswagen (TG:VOW3) traded lower despite strong growth in European car registrations in March.
Renault (EU:RNO) rose 1.5% after reporting first-quarter sales above expectations.
Safran (EU:SAF) added 1% following better-than-expected first-quarter revenue.
Orange (EU:ORA) surged 4% after raising its full-year earnings outlook.
Sanofi (EU:SAN) climbed 3.5% after delivering stronger-than-expected revenue and operating profit in the first quarter.
Sartorius (EU:DIM) dropped nearly 5% after reporting a decline in underlying net profit.
Nestlé (BIT:1NESN) jumped 7% after exceeding first-quarter forecasts, supported by strong demand for coffee and pet care products.
Nokia (NYSE:NOK) surged more than 9% after quarterly profit jumped 54%, driven by strong demand for its AI-related business.
Heineken (EU:HEIA) fell 2.3% after reporting another decline in beer volumes during the quarter.
STMicroelectronics (BIT:STMMI) advanced 8.5% after first-quarter revenue beat expectations.
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