European stock markets slipped slightly Wednesday, as investors digested more quarterly earnings reports.ahead of the release of regional economic activity data.
At 03:05 ET (08:05 GMT), the DAX index in Germany dropped 0.4%, the CAC 40 in France slipped 0.2% and the FTSE 100 in the UK fell 0.1%.
Investors wary of global trade war
Investors remain cautious in Europe Wednesday, as the imposition of 10% tariffs on China’s imports by the Trump administration earlier in the week means the idea of a global trade war lingers.
US President Donald Trump has warned that the European Union is also in his sights for tariffs, stating on Monday that a move on EU goods imported into the US could happen "pretty soon".
Investors are also monitoring developments in the Middle East after President Trump’s surprise suggestion that the United States take over the Gaza strip and turn it into the Riviera of the Middle East.
Services PMI data due
French industrial production fell 0.4% on a monthly basis in December, according to numbers released earlier Wednesday, but most eyes will be on the release of activity data for the dominant services sector throughout Europe later in the session.
Novo Nordisk forecasts slower growth
There are more quarterly corporate results for investors to digest Wednesday, but sentiment has been hit by disappointing earnings from Google-owner Alphabet (NASDAQ:GOOGL) as it spends heavily on capex.
Novo Nordisk (NYSE:NVO) forecast slower sales growth for 2025 than 2024, suggesting the Danish drugmaker, which sells weight management drug Wegovy, is losing its edge in the competitive obesity market.
Credit Agricole (OTC:CRARY) raised its dividend after the French lender reported better-than-expected earnings on higher revenue in the final quarter of 2024, helped by a strong performance in its retail banking sector.
Santander (BME:SAN) reported record annual profits for the third consecutive year, helped by a strong commercial performance, and Spain’s largest bank announced plans for over $10 billion in share buybacks.
GSK (LON:GSK) reported better-than-expected fourth quarter earnings, and the British drugmaker lifted its long-term sales forecast amid progress in its late-stage drugs pipeline while announcing a $2 billion share buyback.
TotalEnergies (EPA:TTEF) raised its dividend Wednesday, as the French energy giant attempted to appease investors after a drop in fourth-quarter earnings caused by weaker oil prices and shrinking refining margins.
Equinor (OL:EQNR) posted slightly higher-than-expected profits for the final quarter of 2024, while the Norwegian energy producer raised its oil and gas output forecast and scaled back plans for renewable energy capacity expansion.
Crude slips on US stockpiles growth
Oil prices slipped lower Wednesday after higher-than-expected US crude inventories data raised concerns over consumption levels in the world’s largest consumer.
By 03:05 ET, the US crude futures (WTI) slipped 0.2% to $72.53 a barrel, while the Brent contract fell 0.3% to $75.96 a barrel.
Crude stocks rose by just over 5 million barrels in the week ended Jan. 31, according to data from the American Petroleum Institute, while gasoline inventories rose by a similar amount.
Official US government oil inventory data from the Energy Information Administration are due to be released later in the session.
