European equity markets showed mixed performance on Thursday as investors assessed overnight declines on Wall Street alongside a fresh wave of corporate earnings releases, while attention remained fixed on upcoming monetary policy announcements from the European Central Bank and the Bank of England.
At 08:05 GMT, Germany’s DAX index slipped 0.2% and the U.K.’s FTSE 100 declined 0.4%, while France’s CAC 40 advanced 0.6%.
Corporate results dominate market focus
Global investor sentiment has been pressured by growing concerns over the escalating costs tied to artificial intelligence infrastructure, which contributed to a sharp sell-off in U.S. technology shares overnight and losses across major Asian markets earlier in the day.
Alphabet signalled late Wednesday that its capital expenditure could potentially double this year, reflecting another significant increase in spending by Google’s parent company as it expands investment to overcome computing capacity limitations and strengthen its position in the AI sector.
Meanwhile, European investors continued reviewing earnings from several major regional corporations.
Energy giant Shell (LSE:SHEL) reported adjusted earnings of $3.26 billion for the fourth quarter, representing a decline from $3.7 billion recorded a year earlier and marking the company’s weakest quarterly performance in nearly five years.
Danish shipping group Maersk (TG:DP4A) announced fourth-quarter operating profit broadly aligned with market expectations but warned that declining freight rates, combined with ongoing industry pressures, could negatively impact earnings in 2026.
BNP Paribas (EU:BNP) lifted its profitability targets for 2028 after fourth-quarter profit climbed 28%, with France’s largest bank expecting structural cost savings and a supportive interest rate environment to accelerate future earnings expansion.
Banco Bilbao Vizcaya Argentaria (LSE:BVA) reported net profit of €2.53 billion for the fourth quarter, representing a 4% increase from €2.43 billion a year earlier, supported by loan growth in Spain and Mexico that helped offset higher credit provisions.
Siemens Healthineers (TG:SIE) posted strong first-quarter results, with robust demand for imaging technology and cancer treatment equipment helping to offset weaker performance in its diagnostics division and the impact of currency fluctuations.
ECB and BOE policy decisions in focus
Outside the corporate sphere, German industrial orders increased 7.8% in December compared with the previous month, significantly outperforming expectations for a 2.2% decline.
The European Central Bank is widely expected to leave interest rates unchanged at 2% later in the day, marking a fifth consecutive meeting without a rate adjustment. However, the sharp decline in eurozone inflation during January may present new challenges for policymakers.
Recent data showed eurozone consumer price inflation slowed to 1.7% year-on-year in January, down from 1.9% in December.
Similarly, the Bank of England is expected to hold its benchmark rate steady at 3.75% later in the session, with analysts pointing to persistent inflation risks despite signs of softening labour market conditions.
Oil prices fall as U.S.-Iran talks ease supply fears
Crude oil prices dropped sharply on Thursday after the United States and Iran agreed to hold diplomatic talks in Oman on Friday, easing concerns about potential military escalation that could disrupt energy supply in the region.
Brent crude futures for April delivery fell 1.5% to $68.39 per barrel, while U.S. West Texas Intermediate crude declined 1.6% to $64.10 per barrel.
Both oil benchmarks had climbed roughly 3% on Wednesday amid concerns that negotiations between the United States and Iran might collapse.
Despite the planned discussions, uncertainty remains, with concerns that U.S. President Donald Trump could still proceed with previously issued threats to strike Iran, the fourth-largest oil producer within the Organization of the Petroleum Exporting Countries, potentially triggering broader instability in the region.
