European stocks edged higher Wednesday, boosted by renewed global confidence as investors assessed a deluge of major quarterly corporate earnings.
At 03:02 ET (08:02 GMT), the DAX index in Germany climbed 0.1%, the CAC 40 in France gained 0.2% and the FTSE 100 in the U.K. rose 0.5%.
Subscribe to InvestingPro for more stock market analysis Risk appetite on the rise Risk appetite is on the rise globally, boosting sentiment in Europe, as the uncertainty surrounding U.S. President Donald Trump’s new global trade tariffs settles down.
The main indices on Wall Street closed higher on Tuesday, and the Japanese, South Korean and Australian stock markets hit record highs in Asia overnight.
Trump indicated that he will proceed with his tariff agenda during his State of the Union address overnight, even after the Supreme Court’s recent ruling against his authority to impose tariffs under the International Emergency Economic Powers Act.
However, his scope for imposing new tariffs under the act is expected to be severely limited, given that the president will need to seek Congressional approval for any more duties.
HSBC lifts key target; Nvidia earnings due This positive sentiment will be tested later in the session, with AI-darling Nvidia (NASDAQ:NVDA) set to report its latest results after the close on Wall Street.
The chip maker, the world’s most valuable company, has outpaced sales forecasts for 13 straight quarters, so it’s the size of the beat that matters. Forecasts are for profits to rise 62% in the quarter to end January, and revenue to jump 68%, according to LSEG data.
Back in Europe, there are also a number of significant companies that have reported results for investors to wade through.
Europe’s largest lender HSBC (LON:HSBA) beat full-year profit forecasts, even as its pretax profit slipped 7%, and set a 2026 net interest income target above expectations, suggesting the bank’s planned overhaul has now been completed and further growth is in its sights.
E.ON (ETR:EONGn) reported 2025 earnings in line with analyst expectations and raised its five-year investment plan to €48 billion, but Europe’s largest energy network operator forecast 2026 net profit below this year’s level.
Italian aerospace and defence group Leonardo (BIT:LDOF) posted its strongest results in three years, with new orders jumping 55% in its aeronautics division and net debt nearly halving, as surging European security spending translated into record bookings across its portfolio.
Diageo (LON:DGE) cut its annual sales and profit forecast for the second time in four months and slashed its dividend, as the world’s biggest spirits maker struggled to cope with weak U.S. and Chinese demand.
Nordex (ETR:NDXG) reported fourth-quarter results that exceeded expectations and issued fiscal 2026 guidance above consensus, with the German wind turbine manufacturer also raising its medium-term profitability target.
Adecco Group (SIX:ADEN) reported fourth quarter earnings that exceeded expectations, though gross margin performance fell short of guidance, raising concerns about profitability trends for the world’s leading staffing company.
German economy grew in Q4 Elsewhere, data released earlier Wednesday confirmed that the German economy grew by 0.3% in the fourth quarter of 2025 compared with the previous quarter, an improvement from the flat growth seen during the previous three months.
There was also less positive news to digest in the form of the GfK consumer sentiment index, which suggested consumer sentiment in Germany is set to worsen unexpectedly in March.
The index, published by the GfK market research institute and the Nuremberg Institute for Market Decisions, fell to -24.7 points for March from a revised -24.2 points the month before, contrary to expectations of a rise to -23.1.
Crude prices remain elevated Oil prices rose Wednesday, remaining near seven-month highs, ahead of nuclear talks between the U.S. and Iran amid concerns of a possible conflict between the parties.
Brent futures climbed 0.4% to $70.86 a barrel, and U.S. West Texas Intermediate crude futures rose 0.5% to $65.93 a barrel.
Both contracts remain close to their highest levels since early August as the U.S. has positioned military forces in the Middle East to compel Iran to negotiate an end to its nuclear program.
U.S. envoys, including special representative Steve Witkoff and presidential adviser Jared Kushner, are due to meet Iranian counterparts in Geneva on Thursday, with hopes of reaching a nuclear deal.
