European equities showed mixed performance on Wednesday as investors weighed a fresh wave of corporate earnings alongside key economic releases from across the region.
Market sentiment also remained cautious as fading expectations for a peace agreement involving Iran and renewed inflation concerns kept attention focused on the upcoming meeting in Beijing between U.S. President Donald Trump and Chinese President Xi Jinping.
French inflation accelerates while unemployment rises
Economic data released on Wednesday showed that French consumer inflation climbed to 2.2% in April, matching preliminary estimates and accelerating from 1.7% in March, according to figures from INSEE.
The increase marked the fastest pace of inflation since July 2024, when the rate reached 2.3%.
Harmonized inflation across the European Union also accelerated, rising to 2.5% in April from 2.0% the previous month.
Separate figures showed that France’s unemployment rate unexpectedly increased to 8.1% during the first quarter, reaching its highest level since the opening quarter of 2021.
German wholesale inflation strengthens
In Germany, data published by Destatis showed wholesale prices increased 6.3% year-on-year in April, following a 4.1% rise in March.
The increase was linked to higher energy and raw material prices amid tensions involving the United States and Iran. The latest reading represented the highest wholesale inflation rate since February 2023.
Meanwhile, Eurostat confirmed that the Eurozone economy expanded by 0.1% in the first quarter of 2026 compared with the previous quarter.
European indexes move in different directions
France’s CAC 40 index traded 0.4% lower during the session, while the UK’s FTSE 100 hovered near flat territory.
Germany’s DAX index outperformed, gaining 0.6%.
Allianz, E.ON and Deutsche Telekom advance
Among individual movers, Allianz (TG:ALV) moved higher after reporting record first-quarter profit, supported by the sale of stakes in Indian joint ventures.
E.ON (TG:EOAN) also posted strong gains a day after announcing plans to acquire UK energy supplier OVO Energy.
Deutsche Telekom (TG:DTE) advanced after lifting its full-year guidance.
Swiss insurer Zurich Insurance Group (TG:ZFIN) also rallied after reporting premium growth across all business segments.
ABN AMRO, Vallourec and Alstom climb on results
ABN AMRO (EU:ABN) rose sharply after reporting first-quarter profit ahead of market expectations.
Vallourec (EU:VK) also surged following stronger-than-expected quarterly results.
Meanwhile, Alstom (EU:ALO) gained ground after announcing record order intake during the second half of fiscal 2025/2026.
Vistry shares tumble after guidance cut
On the downside, Vistry Group (LSE:VTRY) dropped sharply after reducing its full-year pre-tax profit guidance.
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