European equities moved mostly lower on Thursday as investors balanced lingering geopolitical tensions and uncertainty over the Federal Reserve’s interest-rate outlook against encouraging earnings and guidance from Nvidia.
Stronger-than-anticipated U.S. inflation figures have kept expectations of another Federal Reserve rate increase before the end of the year in focus. Markets are now looking towards Fed Chair Kevin Warsh’s speech at Jackson Hole for further clues on the direction of monetary policy.
DAX advances as German consumer confidence improves
France’s CAC 40 fell 1.1%, while the UK’s FTSE 100 declined 0.4%. Germany’s DAX bucked the wider trend, rising 0.3% after fresh data pointed to an improvement in German consumer sentiment heading into September.
The forward-looking GfK consumer sentiment index increased to -26.6 for September from -29.4 in August, supported by improving income expectations and changes in consumers’ willingness to save.
The stronger German reading provided a positive domestic signal at a time when European markets continue to navigate global political and monetary-policy uncertainty.
Corporate earnings drive individual share moves
Pernod Ricard (EU:RI) shares moved sharply lower after the French wine and spirits group reported a 3.9% decline in annual sales for fiscal 2026, reflecting weaker demand in China and the United States.
Swedish medical technology company Elekta (TG:EJXB) also declined after first-quarter sales came in below expectations.
Prudential (LSE:PRU) moved lower after the insurer reported slower growth in new business profit, while Belgian insurer Ageas (EU:AGS) also lost ground. Ageas’ combined ratio increased to 95.2% in the first half of 2026 from 92.1% a year earlier, reflecting weather-related claims across Europe.
Halfords and Plus500 outperform
Elsewhere, Halfords Group (LSE:HFD) provided a notable bright spot for the London market. Shares in the British cycling and automotive products retailer surged after the company forecast 2027 profit above market expectations.
Plus500 (LSE:PLUS) also posted a strong advance after the trading and betting firm announced a new $100 million share buyback programme.
While major European indices traded cautiously overall, encouraging German consumer confidence and strong company-specific performances provided areas of optimism. Investors will now turn their attention to Jackson Hole for further indications of how the Federal Reserve could approach interest rates during the remainder of the year.
Leave a Reply