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European equities showed a mixed performance on Thursday as investors digested another busy round of corporate earnings and kept an eye on trade developments between the U.S. and China.

On the geopolitical front, EU member states officially approved a 19th package of sanctions against Russia over its war in Ukraine. The new measures include a ban on imports of Russian liquefied natural gas.

“It’s a significant package that targets main Russian revenue streams through new energy, financial, and trade measures,” the Danish rotating presidency of the EU said.

Among major indexes, Germany’s DAX slipped 0.2%, France’s CAC 40 added 0.2%, and the U.K.’s FTSE 100 advanced 0.6%.

In earnings news, SAP SE (TG:SAP) fell 2% after third-quarter revenue missed analyst expectations. Orange S.A. (EU:ORA) gained 1% after raising its full-year guidance thanks to stronger-than-expected core profit.

Catering giant Sodexo (EU:SW) tumbled 8% as it projected slower revenue growth in 2026, pointing to U.S. market headwinds. Defense and aerospace group Thales Group (EU:HO) added 2% after posting a 9% increase in sales over the first nine months of 2025 and reaffirming its full-year outlook.

Automaker Renault Group (EU:RNO) lost 1.4% despite beating third-quarter revenue estimates, while Dassault Systèmes SE (EU:DSY) plunged 16% after trimming its full-year revenue growth forecast.

Semiconductor maker STMicroelectronics (BIT:STMMI) dropped nearly 5% following weaker-than-expected fourth-quarter guidance. In contrast, Volvo Car AB (TG:8JO1) soared 34% after reporting a slight profit increase for Q3, supported by major cost-cutting efforts.

Rentokil Initial (LSE:RTO) jumped 10% as organic revenue growth beat expectations, while InterContinental Hotels Group (LSE:IHG) slipped 1.2% despite stronger room revenue.

Lloyds Banking Group (LSE:LLOY) gained around 1% even after reporting a sharp drop in profit and lowering annual guidance. Consumer goods giant Unilever (LSE:ULVR) rose 2% after reporting a 3.9% increase in underlying sales for Q3 2025.

Nokia Corporation (EU:NOKIA) rallied 9% after third-quarter profit beat forecasts. Roche Holding AG (BIT:1ROG) declined 2.3% as nine-month sales came in below expectations, while Lonza Group (BIT:1LONN) climbed 3.5% after confirming its full-year guidance.

Pensana Plc (LSE:PRE) saw its stock jump 7.5% in London on Thursday after announcing a new supply agreement with Vacuumschmelze GmbH & Co. KG. The memorandum of understanding outlines a five-year partnership to provide rare-earth materials for the German company’s upcoming magnet manufacturing facility in South Carolina.

Under the deal, Pensana will deliver mixed rare-earth carbonate sourced from its Longonjo mine in Angola. The company said the agreement is designed to “strengthen and secure the global rare earth value chain.”

Vacuumschmelze’s South Carolina plant is expected to begin with an annual output of 2,000 tons of magnets, with plans to ramp up production to 12,000 tons by 2029.

To align with this timeline, Pensana is moving to accelerate the launch of production at Longonjo to late 2026 — earlier than its initial target of early 2027. That accelerated schedule is intended to meet the start date of a U.S. ban on imports of Chinese rare-earth products for defense applications, which will take effect in 2027.

Vacuumschmelze joins a growing group of companies setting up magnet production facilities in the U.S. as part of a broader push to build critical supply chains independent of China.

Kering (EU:KER) reported a smaller-than-expected drop in third-quarter revenue on Wednesday, with signs that its luxury fashion portfolio is stabilizing. The French luxury group is moving aggressively to reduce debt and strengthen its focus on its core labels.

Shares of Kering listed in the U.S. jumped nearly 10% after the earnings release.

Group revenue for Q3 2025 came in at €3.42 billion, representing a 10% decline on a reported basis and a 5% drop on a comparable basis. That result outperformed analysts’ projections of a 9.6% decline, according to Visible Alpha, despite a 5% negative currency effect. The performance was a notable rebound from the 15% comparable drop recorded in the second quarter.

Sales through the directly operated retail network slipped 6%, while wholesale and other channels were down 2%.

“Kering’s third-quarter performance, while representing a clear sequential improvement, remains far below that of the market,” said CEO Luca de Meo.

As part of its streamlining strategy, the company also announced plans to sell its beauty business to L’Oréal S.A. for €4 billion ($4.7 billion) — a major early move by de Meo as he works to reshape the group and lower its debt.

Gucci weighs, but shows improvement

Gucci, the group’s biggest brand, posted revenue of €1.3 billion, down 18% on a reported basis and 14% on a comparable basis. Retail sales fell 13% but showed sequential improvement thanks to stronger demand in North America and Western Europe and new momentum in leather goods.

Wholesale revenue for Gucci fell 25%, while its La Famiglia collection was unveiled toward the end of the quarter.

Yves Saint Laurent sees mixed performance

Yves Saint Laurent generated €620 million in revenue, down 7% reported and 4% comparable. Retail declined 2%, with growth in North America offsetting a slight dip in Western Europe. Ready-to-Wear and Shoes segments recorded double-digit gains, while wholesale fell 16% as part of ongoing distribution rationalization.

Bottega Veneta edges higher on comparable basis

Bottega Veneta reported revenue of €393 million, down 1% reported but up 3% on a comparable basis. Retail sales grew 5%, supported by North American demand and strength in Ready-to-Wear and Shoes. Wholesale revenue slipped 9%.

Commenting on the update, broker Kepler Cheuvreux said Kering’s “turnaround [is] well underway.”

“The turnaround remains at an early stage, with significant upside potential if Kering returns to normative margin levels,” analyst Charles-Louis Scotti added.

Other Houses and Eyewear drive growth

The “Other Houses” segment brought in €652 million, down 5% reported but up 1% comparable. Retail was stable while wholesale rose 5%, helped by solid performance from Balenciaga, Alexander McQueen, Brioni, and jewelry houses such as Boucheron, Pomellato, and Qeelin.

Kering Eyewear and Corporate revenue rose to €448 million, up 2% reported and 6% on a comparable basis. Eyewear climbed 7%, supported by strong regional demand and a new partnership with Valentino. Kering Beauté grew 3% thanks to launches from Balenciaga and Creed.

Morgan Stanley analysts said this was “an encouraging Q3 results from Kering this evening and management sounded more upbeat than it had for relatively long time.”

“The stock remains our Top Pick in the European Luxury Goods space.”

U.S. equity futures showed little clear direction early Thursday as investors weighed a flood of earnings reports against renewed trade headlines. Shares of Tesla, Inc. (NASDAQ:TSLA) fell in after-hours trading following weaker-than-expected third-quarter results, while Intel Corporation (NASDAQ:INTC) is set to take center stage later in the day. Meanwhile, Beyond Meat, Inc. (NASDAQ:BYND) pulled back after a volatile session dominated by retail traders.

U.S. futures edge mixed

Futures pointed to a muted open, with investors digesting earnings and looking for signs of progress in U.S.–China trade discussions. As of 02:55 ET, Dow futures slipped 36 points, or 0.1%, while S&P 500 futures ticked up 11 points, or 0.2%. Nasdaq 100 futures gained 66 points, or 0.3%.

Wall Street had retreated the previous session, led by a sharp selloff in Netflix, Inc., (NASDAQ:NFLX) whose shares tumbled more than 10% after its quarterly operating margin spooked investors worried about stretched valuations. Texas Instruments Incorporated (NASDAQ:TXN) also weighed on sentiment, issuing a disappointing forecast that sent its stock down 5.6%.

Despite some soft spots, the early earnings season has mostly been encouraging. Roughly 86% of companies reporting so far have beaten expectations. Aggregate earnings for the S&P 500 are projected to climb 9.3% year-over-year, according to LSEG data cited by Reuters.

Trade remained another key theme. President Donald Trump said he expects to strike agreements with President Xi Jinping when the two potentially meet in South Korea next week.

Tesla earnings fall short

Shares of Tesla slid more than 3% in extended trading after the automaker’s Q3 results missed analyst forecasts. Robust sales were undercut by rising costs as the company braces for a slowdown in domestic demand following the end of an EV tax credit.

For the third quarter, Tesla posted adjusted EPS of $0.50 on $28.1 billion in revenue, shy of Wall Street expectations of $0.54 a share and $26.22 billion in sales. Vehicle deliveries climbed 7% year-on-year to 497,098 as buyers rushed to secure a $7,500 credit before its expiration. That surge was offset by higher operating expenses.

Gross margins excluding regulatory credits came in at 17%, roughly flat compared with last year.

“[I]t’s clear that margins have taken a solid hit from tariffs — both directly through higher material costs and indirectly by forcing more ad-hoc inventory management, traditionally one of Tesla’s strengths,” said Thomas Monteiro, Senior Analyst at Investing.com.

Intel set to report

Intel will headline Thursday’s earnings lineup after the close. Shares of the chipmaker have climbed in recent weeks on the back of capital infusions from NVIDIA Corporation (NASDAQ:NVDA), SoftBank Group Corp., and a 10% U.S. government stake announced by Trump in August. The president also said Intel CEO Lip-Bu Tan should step down over conflict-of-interest concerns.

While Tan has sought strategic partners, Intel’s near-term outlook remains uncertain. It continues to trail competitors like NVIDIA and Advanced Micro Devices, Inc. (NASDAQ:AMD) in AI development, and its contract manufacturing unit lags Taiwan Semiconductor Manufacturing Company Limited.

The company is expected to report roughly break-even results, with pressure from its data center and AI businesses contributing to a projected 1.2% decline in revenue to $13.12 billion.

Beyond Meat retreats after meme-stock surge

Beyond Meat shares sank more than 11% after hours, pulling back from a dizzying rally earlier in the week. The stock closed down 1.1% at $3.58 after soaring earlier in the session amid heavy meme-stock activity. More than 2 billion shares changed hands, according to FactSet data cited by The Wall Street Journal.

The plant-based meat maker’s stock had hovered near $0.52 just last week as investors fretted over its debt situation. But a Tuesday announcement that Walmart Inc. would expand its product distribution triggered a massive short squeeze.

Over the past year, the stock has mostly traded between $2 and $4 amid weak demand, layoffs, and financial pressures.

U.S. sanctions Russian oil giants

In a policy shift, Trump announced sanctions against Lukoil PJSC and Rosneft, citing Moscow’s “lack of serious commitment to a peace process to end the war in Ukraine.” Treasury Secretary Scott Bessent added that the firms funded “the Kremlin’s war machine” and pledged additional action if needed.

The move lifted oil prices by easing fears of oversupply. Benchmark Brent crude rose 3.3% to $64.67 a barrel, while West Texas Intermediate futures climbed 3.5% to $60.50.

Gold prices moved higher in Asian trading on Thursday, recovering part of their recent sharp losses as renewed friction between Washington and Beijing prompted investors to seek safe-haven assets ahead of key U.S. inflation data.

By 06:15 GMT, spot gold gained 0.9% to $4,137.40 per ounce, while U.S. gold futures advanced 2% to $4,144.89. The rebound comes after bullion tumbled more than 5% on Tuesday and fell further on Wednesday, hitting a two-week low of $4,003.39 an ounce.

The earlier slump had been driven by profit-taking at recent highs, supported by hopes that trade tensions between the U.S. and China were easing.

Trade tensions spark renewed safe-haven buying

Market sentiment shifted midweek after a Reuters report revealed that the Trump administration was considering restrictions on a wide range of software-powered exports to China in response to Beijing’s latest rare earth export curbs.

The prospect of a further escalation in the U.S.–China trade conflict boosted gold’s safe-haven appeal.

Fresh sanctions against Russia also added to geopolitical risk. The U.S. imposed Ukraine-related sanctions on Rosneft and Lukoil on Wednesday, while the European Union approved its 19th package of measures against Moscow, including a ban on Russian LNG imports and new listings of tankers in its “shadow fleet.”

Investors eye delayed U.S. inflation data

Market attention is now turning to Friday’s release of the U.S. Consumer Price Index for September, which was postponed due to the prolonged government shutdown.

The data are expected to guide the Federal Reserve’s next policy decision at its meeting next week. Anticipation of further rate cuts this year has helped stabilize gold, as lower interest rates reduce the opportunity cost of holding non-yielding assets.

Other metals rebound

A broadly steady U.S. dollar also supported other precious and base metals. Silver futures surged 2% to $48.632 per ounce, while platinum futures rose 1% to $1,593.60 per ounce.

Benchmark copper futures on the London Metal Exchange climbed 0.4% to $10,712.20 per metric ton, with U.S. copper futures up 0.4% at $5.03 per pound.

Oil prices rallied more than 3% on Thursday, building on the previous session’s gains, after India signaled it may reassess its Russian crude purchases in response to fresh U.S. sanctions targeting Rosneft and Lukoil.

By 06:14 GMT, Brent crude futures had gained $2.12, or 3.4%, to $64.71 per barrel, while U.S. West Texas Intermediate crude futures were up $2.09, or 3.6%, at $60.59.

The U.S. warned it was prepared to take additional measures as it urged Moscow to agree to a ceasefire in its war against Ukraine. Last week, the U.K. imposed its own sanctions on Rosneft and Lukoil, while EU countries approved a 19th sanctions package, including a ban on imports of Russian LNG.

“President Trump’s fresh sanctions hitting Russia’s biggest oil houses aim squarely at choking Kremlin war revenues – a move that could tighten physical flows of Russian barrels and force buyers to re-route volumes onto the open market,” said Phillip Nova’s senior market analyst Priyanka Sachdeva.

Immediately after the sanctions were unveiled, Brent and WTI futures spiked more than $2 a barrel, with prices also supported by an unexpected drop in U.S. inventories.

“If New Delhi trims purchases under U.S. pressure, we could see Asian demand pivot toward U.S. crude, lifting Atlantic prices,” Sachdeva added.

According to industry sources, Indian refiners are preparing to sharply reduce imports of Russian crude following the new measures. India has emerged as the largest buyer of discounted Russian seaborne crude since Moscow’s 2022 invasion of Ukraine, taking in around 1.7 million barrels per day in the first nine months of 2025.

Two people familiar with the matter said privately owned Reliance Industries — India’s top buyer of Russian oil — intends to scale back or even halt purchases entirely.

Indian state-owned refiners generally don’t buy directly from Rosneft or Lukoil, relying instead on intermediaries for most transactions, trade sources added.

Still, skepticism in the market limited the upside for crude, as some questioned whether the new U.S. sanctions would materially shift supply-demand balances.

“The new sanctions are certainly upping the ante between US and Russia but I see the oil price jump more like a knee-jerk reaction by the markets rather than a structural shift,” said Rystad Energy’s global market analysis director, Claudio Galimberti.

“So far, almost all the sanctions against Russia for the past 3.5 years have mostly failed to dent either the volumes produced by the country or the oil revenues,” he noted, adding that Indian and Chinese buyers have largely kept their flows intact.

Looking ahead, traders are monitoring potential supply increases from OPEC+ as production cuts are unwound, which could weigh on prices in the near term.

“The three factors I will be watching going into Nov are OPEC+ unwinding, China’s crude stockpiling, and the wars in Ukraine and Mid-east, in this order,” said Galimberti.

The U.S. dollar firmed modestly on Thursday as investors digested renewed trade tensions between Washington and Beijing, while awaiting key U.S. inflation data that could shape the currency’s next move.

At 03:50 ET, the U.S. Dollar Index, which measures the greenback against six major currencies, was up 0.1% at 98.805, recovering after steep declines in the previous week.

Safe-haven demand lifts the greenback

The dollar found some support as investors grew cautious over the deteriorating state of U.S.-China relations, with fears mounting over a potential escalation into a trade war between the two largest global economies.

According to Reuters, Trump’s administration is weighing a plan to restrict a wide range of technology exports to China, including laptops, jet engines and other high-tech goods, in retaliation for Beijing’s recent curbs on rare earth exports.

U.S. President Donald Trump and Chinese President Xi Jinping are expected to meet in South Korea next week. While Trump has voiced optimism, he also noted that “a meeting may not take place.”

In a separate development, Trump announced sanctions against Lukoil and Rosneft, accusing Moscow of showing a “lack of serious commitment to a peace process to end the war in Ukraine.”

The move boosted crude oil prices — which are denominated in dollars — giving the greenback an extra lift.

However, “the move has merely unwound October’s losses so far, and we’d likely need to see Brent heading to $70 [from the current $64 a barrel] to result in tangible support for USD,” said ING analyst Francesco Pesole.

CPI data could be key driver

Although the U.S. government shutdown remains unresolved, the September Consumer Price Index is scheduled to be published Friday after being delayed more than a week. The report could provide the next major catalyst for dollar volatility.

“We reiterate our view that the dollar’s rebound is getting tired and probably requires some hawkish repricing to keep going,” said Pesole. “We don’t think tomorrow’s U.S. CPI will offer that opportunity as we expect a consensus 0.3% MoM core print. But surely with 50bp of easing fully priced in by year-end, any hot print could offer good support to the dollar.”

Euro dips modestly

The euro slipped, with EUR/USD down 0.2% at 1.1592, after the White House confirmed sanctions against Russia’s biggest oil producers, again citing Moscow’s “lack of serious commitment to a peace process to end the war in Ukraine.”

“EUR/USD is hovering around 1.160, a level that, in our view, can work as an anchor again today and possibly for a few more days should U.S. CPI fail to add much to the dollar narrative,” said Pesole.

The European Central Bank is set to meet next week, but expectations for new policy moves remain low given inflation is near its 2% target and eurozone growth is holding steady.

GBP/USD edged down to 1.3351 as sterling came under mild pressure after data on Wednesday showed inflation holding steady at 3.8% in September, below expectations for an acceleration to 4.0%.

Yen weakens further

USD/JPY climbed 0.4% to 152.58, the highest level in nine days, as the yen weakened following the appointment of Sanae Takaichi as Japan’s new prime minister earlier this week. Takaichi is seen as fiscally dovish and is expected to ease both fiscal and monetary policy, which adds pressure on the yen.

That said, the Bank of Japan has indicated it will continue raising interest rates if growth and inflation stay on track, with September CPI data due Friday, just ahead of its late-October policy meeting.

USD/CNY ticked lower to 7.1229, supported by strong midpoint fixes from the People’s Bank of China. Trade tensions between the U.S. and China flared again this week after reports that Washington is considering new export controls on software-powered technologies in response to Beijing’s rare earth restrictions.

AUD/USD added 0.3% to 0.6506 and NZD/USD edged up 0.1% to 0.5746.

European equity markets opened with slight gains on Thursday, supported by strength in the energy sector amid a flood of quarterly earnings reports and escalating geopolitical tensions.

By 07:05 GMT, Germany’s DAX was up 0.1%, France’s CAC 40 gained 0.2% and the U.K.’s FTSE 100 rose 0.4%.

Trump sanctions Russian oil majors

U.S. President Donald Trump announced new sanctions against Russia’s largest oil companies, Lukoil and Rosneft, with his administration citing Moscow’s “lack of serious commitment to a peace process to end the war in Ukraine.”

Treasury Secretary Scott Bessent said the companies funded “the Kremlin’s war machine,” adding that the Treasury was prepared to impose further measures if necessary. This represents a shift in Trump’s policy toward Moscow, as no direct sanctions had been introduced during his second term until now.

The move has raised concerns over a reduction in global oil supply, pushing benchmark prices sharply higher and lifting European energy stocks. Brent futures climbed 3.1% to $64.54 a barrel, while U.S. West Texas Intermediate crude rose 3.3% to $60.43.

U.S.-China trade tensions limit gains

However, the upside was capped as investors continued to focus on the tense relationship between Washington and Beijing, amid fears of an escalating trade war between the two largest economies. According to Reuters, Trump’s administration is weighing restrictions on a broad range of technology exports to China — including laptops, jet engines, and other high-tech goods — in response to Beijing’s latest rare earth export curbs.

Trump and Chinese President Xi Jinping are expected to meet in South Korea next week, and while the U.S. president has sounded optimistic, he acknowledged that “a meeting may not take place.”

European earnings in focus

Corporate results across the continent are also driving market sentiment. Unilever (LSE:ULVR) reported better-than-expected third-quarter underlying sales growth, helped by strong demand for beauty products in North America and emerging markets.

Lloyds Banking Group (LSE:LLOY) posted a 36% decline in third-quarter profit and cut its full-year guidance due to an £800 million charge tied to a motor-finance mis-selling scandal.

Finland’s Nokia (NYSE:NOK) delivered quarterly earnings well above expectations, supported by robust demand in optical and cloud services, as well as sales to AI data centers following its acquisition of Infinera.

French defense and aerospace company Thales (EU:HO) posted a 9% sales increase in the first nine months of 2025, reaffirming its financial targets.

Catering group Sodexo (EU:SW) issued a weaker 2026 growth forecast, citing persistent headwinds in its U.S. business.

Chipmaker STMicroelectronics (BIT:STMMI) reported a 32% drop in third-quarter net income due to weaker automotive and industrial demand, though it expects a slight sequential revenue uptick in Q4.

Dassault Systèmes (EU:DSY) saw earnings and margins expand but trimmed its 2025 revenue guidance on softer segment growth.

Tesla kicks off U.S. tech earnings season

Wall Street is also preparing for key results from Tesla, Inc. (NASDAQ:TSLA), the first of the so-called “Magnificent Seven” to report.

The electric vehicle maker’s quarterly profit fell short of expectations, pressured by tariffs, R&D costs, and lower income from regulatory credits. Revenue, however, beat forecasts, supported by record vehicle sales as U.S. customers rushed to claim a tax credit before its expiration last month.

Tesla’s performance is seen as an early indicator for the broader tech sector rally. The rest of the group — Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Alphabet Inc. (NASDAQ:GOOGL) — are set to publish their earnings in the coming days.

Airbus (EU:AIR), Leonardo (BIT:LDO) and Thales (EU:HO) have signed a Memorandum of Understanding to merge their space operations into a single joint venture, which is expected to become operational in 2027.

As part of the agreement, Leonardo will contribute its entire Space Division, including its 67% stake in Telespazio and its 33% stake in Thales Alenia Space. Telespazio, which is fully consolidated, is currently profitable, while Thales Alenia Space, which is equity accounted, is loss-making.

On a pro forma basis, the new entity would have generated €6.5 billion in revenue in 2024. Profitability figures were not disclosed, but the companies indicated margins remain low. Leonardo will hold a 32.5% stake in the new company, which is expected to be equity consolidated.

The three partners estimate the combination will deliver approximately €500 million in annual operating income synergies within five years of closing — representing a potential 4–5% increase in Leonardo’s expected 2023 EBITA.

Ipsos (EU:IPS) saw its shares drop 3.5% after the company lowered its full-year 2025 organic growth outlook, even as it delivered stronger-than-expected third-quarter results.

Organic growth came in at 2.9% for the quarter, slightly ahead of the 2.7% forecast. On a six-year compound annual growth rate (CAGR) from 2019 to 2025, this represented an improvement from 3.3% to 3.4%, highlighting continued momentum in key markets.

The Americas led regional performance with growth of 4.3%. The U.S. market, under new leadership, rose 3% over the first nine months of the year versus 1.2% for the Americas overall. This came despite a 15% decline in Public Affairs, offset by strong demand from consumer packaged goods companies and improved results in the healthcare sector.

Most business segments improved sequentially in the third quarter. The Consumer division—which accounts for about half of group sales—accelerated from 1.6% growth in Q2 to 4.9% in Q3. Healthcare posted 4.4% growth, slightly down from 5.2% the prior quarter. Public Affairs remained in decline but showed signs of stabilization, improving from -8.7% in Q2 to -4.7% in Q3.

Despite the operational strength, Ipsos trimmed its full-year organic growth guidance from “1%+” to 0.7%, below the 1.3% recorded in 2024. The company attributed the downgrade to delays caused by the U.S. government shutdown and spending constraints in markets such as France and the UK.

The revision follows a weaker order intake in September, particularly in Public Affairs across the U.S., France, and Australia/New Zealand—contrasting with the company’s confident tone during its mid-September investor conference.

The updated guidance implies Q4 organic growth of roughly 0.5%, down from the previous 2.2% expectation. Ipsos, however, maintained its full-year 2025 margin outlook of around 12.4%, or 13% excluding the dilutive impact of consolidating lower-margin BVA Family.