Stocks gain despite Middle East tensions and looming U.S. tech earnings
European equity markets traded higher on Wednesday as investors balanced escalating geopolitical risks in the Middle East against signs of easing inflation in the United Kingdom and awaited earnings from several major U.S. technology companies.
Oil prices remained in focus after Brent crude surged almost 4% to its highest level in seven weeks, climbing above $94 a barrel. The rally followed an 11th consecutive night of U.S. military strikes against Iran, while President Trump pledged further action targeting Pickaxe Mountain. Iranian media also reported explosions in Bushehr, where the country’s nuclear power facility is located.
UK inflation slows more than expected
Investor sentiment received some support from fresh economic data showing that inflation in the UK continued to moderate.
Figures released by the Office for National Statistics showed that the consumer price index increased 2.6% year over year in June, easing from 2.8% in May and coming in below economists’ expectations of 2.7%.
On a monthly basis, consumer prices rose 0.1%, matching forecasts and slowing from the 0.2% increase recorded in May.
By midday trading, London’s FTSE 100 had gained 1.4%, while France’s CAC 40 advanced 0.9% and Germany’s DAX added 0.3%.
Corporate earnings drive individual movers
Among the day’s strongest performers, Randstad (EU:RAND) rallied after reporting quarterly organic revenue growth that exceeded market expectations.
Santander (LSE:BNC) also moved higher after posting a 17% increase in underlying second-quarter net profit, supported by robust performances in Spain and the United Kingdom.
Airbus (EU:AIR) climbed after unveiling a €5 billion share repurchase programme to be executed over the next three years while reaffirming its fiscal 2026 guidance for approximately 870 commercial aircraft deliveries and adjusted EBIT of around €7.5 billion.
Shares of Germany’s GEA Group (TG:G1A) advanced after the company released stronger-than-expected preliminary second-quarter results and upgraded its full-year outlook.
Fresnillo (LSE:FRES) also gained after reaffirming its production guidance for 2026 through 2028 following solid operational performance during the second quarter.
Weak outlooks pressure several stocks
Not all companies shared in the broader market strength.
Dutch telecommunications provider KPN (EU:KPN) declined after slightly lowering its forecast for 2026 service revenue growth.
Swiss pharmaceutical manufacturing specialist Lonza (TG:LO3) also fell after first-half revenue narrowly missed analysts’ expectations.
Meanwhile, British pub operator J D Wetherspoon (LSE:JDW) dropped sharply after warning that full-year profit is expected to come in below previous market forecasts.
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