European stocks rose Wednesday, with investors focusing on more quarterly corporate results during what has generally been a positive earnings season.
The DAX index in Germany and the CAC 40 in France both gained 2%. The FTSE 100 in the U.K. rose 0.3%.
European earnings results have been generally upbeat in the second quarter, but companies are starting to show a clearer tariff impact, suggesting that the third quarter could be more difficult.
Earnings deluge continues
It has been another bust day for earnings in Europe, and investors have been parsing through the numbers.
Novo Nordisk (NYSE:NVO) lowered its full-year sales and profit guidance, with the drug maker citing slower-than-expected growth in its weight-loss treatments Wegovy and Ozempic across key markets, even as first-half results showed strong double-digit gains.
Bayer (OTC:BAYRY) said it has eliminated around 12,000 full-time positions since the pharmaceutical giant launched a restructuring effort aimed at streamlining decision-making and reducing layers of management and administration.
Siemens (ETR:SIEGn) Energy expects to hit the upper end of its 2025 growth outlook range, driven by its wind turbine division and strong power equipment demand in the U.S., which helped offset the impact of import tariffs.
Fresenius (ETR:FREG) raised its revenue outlook for the full year, with the German healthcare group now expecting up to 7% organic growth.
Commerzbank’s (ETR:CBKG) second-quarter net profit fell 14% year on year, with the German lender citing restructuring costs, but it still raised its full-year outlook.
Glencore (OTC:GLNCY) posted a decline in first-half adjusted earnings as weaker coal prices and reduced copper output weighed, while the commodity trader and miner also reported a deeper net loss than expected due to a sizable impairment tied to its Colombian coal assets.
Across the pond, investors await results from the likes of entertainment colossus Disney (NYSE:DIS), ride-hailing company Uber (NYSE:UBER) and fast food giant McDonald’s (NYSE:MCD).
Eurozone retail sales due
German industrial orders fell 1% on the month in June, a disappointing release given analysts had generally expected a rise of 1.0%.
Eurozone retail sales expanded quicker than anticipated in June, according to the data released Wednesday. Sales in the 20 nations sharing the euro currency grew by 3.1% in June compared to the same month a year earlier, significantly outpacing the 2.6% increase economists had forecast.
There is little in the way of significant economic data due for release in the U.S. later Wednesday, but a $42 billion auction of 10-year notes will be closely watched after a three-year auction went poorly on Tuesday.
Crude rebounds after weakness
Oil prices rose Wednesday, rebounding from the previous session’s five-week low in the previous day with the prospect of tighter U.S. sanctions against the buyers of Russian oil offering some support.
At 11:45 ET, Brent futures gained 1.1% to $68.38 a barrel, and U.S. West Texas Intermediate crude futures also rose 1.1% to $65.88 a barrel.
Both benchmarks fell by more than $1 on Tuesday to settle at their lowest in five weeks, marking a fourth session of losses, on oversupply concerns from OPEC+’s planned September output hike.
Trump on Tuesday kept up his threats of increasing trade tariffs against India, over New Delhi’s continued purchase of Russian oil, saying he will impose additional tariffs on India this week, after slapping the country with 25% tariffs last week.
API data showing a substantially bigger-than-expected draw in U.S. oil inventories last week–4.2 million barrels, against expectations for a 1.8 million barrel draw–also offered support.
source https://www.investing.com/news/stock-market-news/european-stocks-rise-as-quarterly-earnings-continue-eurozone-retail-sales-due-4171947
