European stock markets rose Thursday, as investors digested a deluge of corporate earnings ahead of the European Central Bank’s latest policy decision and the release of regional growth data.
At 03:05 ET (08:05 GMT), the DAX index in Germany climbed 0.2%, the CAC 40 in France rose 0.3% and the FTSE 100 in the UK gained 0.1%.
ECB policy meeting in spotlight
European equities have benefited Thursday from gains in US stock futures after the release of quarterly results from a number of megatech companies after the close of the previous session, following the decision of the Federal Reserve to hold interest rates unchanged.
However, attention now turns to the ECB, which is expected to cut rates by a quarter of a percentage point later in the session, despite eurozone inflation ticking upwards over the past few months.
The ECB eased interest rates four times last year to address weak growth throughout the eurozone, and against this backdrop investors will be closely watching the latest growth data from the eurozone on Thursday.
Germany is set to release its quarterly GDP number later in the session, ahead of the eurozone number.
Ahead of this, data released earlier Thursday showed that France's economy retreated slightly in the fourth quarter, with the eurozone's second-biggest economy declining by 0.1% in the last three months of 2024 after an unrevised 0.4% rise in the third quarter.
Shell disappoints with Q4 profit
In the corporate sector, Shell (LON:SHEL) reported a smaller fourth-quarter profit, as the oil major took a hit from lower refining margins and lower liquefied natural gas trading.
The energy giant said it would buy back shares worth $3.5 billion.
The world's top oil and gas companies have experienced a decline in profits throughout 2024, following record earnings in the previous two years, as energy prices stabilized and global oil demand weakened.
Deutsche Bank (ETR:DBKGn) posted a bigger-than-expected drop in fourth quarter and 2024 full-year profit as legal provisions and restructuring costs eroded revenue gains at the German lender’s global investment banking division.
H&M (ST:HMb) reported weaker than expected sales for its fourth quarter ending Nov 30, but the Swedish fast-fashion retailer said sales were up 4% in December and January, indicating a better start to the new fiscal year.
Swiss healthcare giant Roche (SIX:RO) said it expects high single-digit growth in core profit for 2025, following a strong performance in 2024 driven by strong sales in both its pharmaceuticals and diagnostics divisions.
Finnish telecom company Nokia (HE:NOKIA) reported strong fourth-quarter growth and profitability, signaling a recovery in market trends after a challenging year.
French drugmaker Sanofi (NASDAQ:SNY) reported a fourth-quarter profit largely in-line with expectations, and said it would buy back E5 billion euros in shares this year as it seeks to build investor confidence in its drug pipeline.
STMicroelectronics (EPA:STMPA), one of Europe's largest chipmakers, said it expected sales to fall further in the first quarter of 2025, as the downturn seen in its key markets drags on into the new year.
Crude eyes trade tariffs
Oil prices steadied Thursday, but concerns remain over the impact of potential trade tariffs on global growth as well as the likelihood of increased US production.
By 03:05 ET, the US crude futures (WTI) slipped 0.1% to $72.58 a barrel, while the Brent contract fell 0.2% to $75.47 a barrel.
Oil prices were nursing losses over the past week after US President Donald Trump called for lower oil prices and higher output in the US and other major suppliers, while data showing a build in US oil inventories also weighed.
Markets remained largely skittish over Trump’s plans to impose more trade tariffs on major global economies, especially China.
Investors are also looking ahead to a ministerial meeting by the Organization of the Petroleum Exporting Countries and its allies, together called OPEC+, scheduled for Feb. 3.
