This was CNBC’s live blog covering European markets.
European stock markets closed lower on Thursday amid the latest flurry of earnings releases.
The regional Stoxx 600 index was choppy in early deals but provisionally ended the session 0.18% lower.
Shares of Schneider Electric rose 6% before paring gains to close 3% higher, after the French energy management firm reported record annual sales and profits, beating market expectations.
Earnings from corporates including Accor, Renault, Mercedes-Benz, Leonardo and Airbus were also in focus as the trade session kicked off.
U.S. President Donald Trump’s proposed tariffs on autos, chips and pharmaceutical imports, and the possibility that the Federal Reserve keeps interest rates higher for longer, are meanwhile being assessed by global traders on Thursday.
Trump, who said the duties could be implemented as soon as April 2, did not specify whether they will be targeted at imports from certain countries or be broad-based.
Meanwhile, Fed officials in January agreed they would need to see inflation come down more before lowering interest rates further, according to meeting minutes released Wednesday. Asia-Pacific markets and U.S. stocks were lower on Thursday.
Europe stocks close lower
European markets closed lower on Thursday after a choppy start in early deals, with the Stoxx 600 index ending the session 0.18% lower to 551.12.
The U.K.’s FTSE 100 was lower by 0.57%, while France’s CAC 40 was up 0.15%. Germany’s DAX was also down 0.41%. Italy’s FTSE Mib was lower by 0.26%.
— Sawdah Bhaimiya
Winners and losers on the Stoxx 600 index
The biggest winner on the Stoxx600 index on Thursday afternoon was Danish facility management services company ISS, which was up around 13% after reporting full-year results and announcing a 2.5 billion Danish krone ($351 million) share buyback program.
Spanish energy company Repsol and services company Centrica also topped the index, rising 7.6% and 5.4% respectively – after both firms reported earnings.
Meanwhile, the biggest losers on the Stoxx 600 index were French retail company Carrefour and Greek carrier Aegean Airlines, which were both lower by over 9%.
— Sawdah Bhaimiya
NN Group’s shares rise after Dutch insurer posts 35% jump in profit
Dutch insurer NN Group’s shares were up over 3% on Thursday after it reported a 35% jump in annual profit.
The firm’s Operating Capital Generation (OGC) rose to 1.92 billion euros ($2 billion) in 2024, a slight increase of 1.1% from 2023. The firm’s net result rose 35% to 1.58 billion euros from 1.17 billion euros the previous year.
The firm also announced a 300 million euro share buyback program and an 8% rise in its dividend per share year-on-year to 3.44 euros.
NN Group CEO David Knibbe told CNBC’s “Squawk Box Europe” on Thursday that increasing geopolitical uncertainty has led to higher demand for the company’s products in Europe, with business almost doubling since 2020.
“That has really been on the back of this under protection that we see in European markets, and with all the increasing uncertainty, that’s typically a reason that customers start to even think more about how well they are protected, and governments have been struggling to provide that protection, and employers are not always willing, so that means individuals have to step up,” Knibbe told CNBC.
— Sawdah Bhaimiya
U.S. stocks open lower
Stocks were lower on Thursday, with the S&P 500 pulling back from its most recent record.
The broad market index slipped 0.2%, while the Nasdaq Composite fell 0.1%. The Dow Jones Industrial Average lost 168 points, or 0.3%.
— Brian Evans
Mercendes-Benz shares dip after earnings tumble
Shares of Germany’s Mercedes-Benz were 3% lower by mid-morning after the automaker posted operating profit down 30.8% year-on-year to 13.6 billion euros ($14.2 billion), with a 40.5% slide in its cars division.
Analysts at UBS said the results contained “no big surprises” and highlighted the group’s intention to buy back 5 billion euro of shares over the next 24 months.
— Jenni Reid
Defense-focused ETF garners $1 billion in assets
A European fund focused on defense companies has garnered $1 billion in assets.
The Future of Defence UCITS ETF, which has the ticker NATO on the London, Italian, Swiss and French stock exchanges, employs a “NATO screen” to provide exposure to companies domiciled in NATO or allied member states, according to its manager HANetf.
The fund, launched in 2023, has accumulated $1.08 billion in total assets under management, with $210 million in new fund flows this year.
The ETF holds about 60 stocks and has risen more than 15% this year, outperforming the broader benchmarkers Stoxx Europe 600 and S&P 500.
A rise in U.S.-listed Palantir and Germany’s Rheinmetall‘s shares were among the biggest contributors to the fund’s performance this year, according to the fund manager.
European officials have signalled a willingness to ramp up defense spending on the back of increasing pressure from U.S. President Donald Trump to boost funding.
EU Commission President Ursula von der Leyen said defense spending could be exempted from the bloc’s fiscal rules, while NATO chief Mark Rutte said the alliance would raise its spending targets to “at least” 3%.
— Ganesh Rao
Renault CEO says EU emissions rules creating ‘unnecessary pressure’ amid EV transition
Renault CEO Luca de Meo said Thursday that European Union regulation on carbon emissions reductions is creating a challenge for autos firms amid the already difficult transition to electric vehicles.
“We need flexibility. Because that kind of logic with the deadline, a fixed deadline and a fine, that’s not a strategy,” de Meo told CNBC’s Charlotte Reed.
In its 2024 results published Thursday, the automaker said it would take a one percentage-point margin hit in 2024 after new EU rules lowered its fine cap on automotive carbon dioxide emissions.
De Meo said the EV pick-up is already happening at around just 50% of the speed the industry had expected, and that EU regulation is creating “unnecessary pressure” and would cause around 15 billion euros ($15.7 billion) to be “distracted from the business.”
“We have to reinvest, you know, in plants, in gigafactories, in development. We need that money to go there, not to be wasted or sent or bought as a credit to non-European [original equipment manufacturers], or sent to Brussels. So this is what we ask for. I think flexibility is important.”
Renault’s results showed more recent success in the EV transition than some of its peers, with operating profit rising to beat expectations as the likes of Germany’s Mercedes-Benz report a steep decline.
Renault is also set to be largely insulated from the impact of U.S.-imposed global tariffs versus other firms, though de Meo told CNBC the moves would put pressure on the wider industry and hold back Europe’s need to restore automotive production to historic levels.
— Jenni Reid
Renault reports record operating profit and revenue beat
French automaker Renault on Thursday posted its highest-ever annual operating profit while revenues came in well above expectations, as the company said its “unprecedented” flurry of product launches had boosted performance.
Group revenue increased 7.4% year on year to 56.2 billion euros ($58.6 billion), ahead of the 54.4 billion euros forecast in an LSEG-compiled analyst aggregate. Operating income meanwhile rose to 2.58 billion euros from 2.49 billion euros.
However, group net income plunged to 891 million euros from 2.32 billion euros, which it attributed to a 2 billion euro capital loss from its disposal of shares in Nissan and other effects from its partnership with the Japanese carmaker.
Renault’s share price has climbed nearly 40% over the last year as it has embarked on cost-cutting and focused on the rollout of new affordable electric and hybrid models — a task posing a challenge for many auto firms amid weaker-than-expected consumer demand.
Renault said Thursday it would accelerate cost reduction in 2025 along with launching new products, though said its operating margin outlook was for 7% in 2025, down from 7.6% in 2024. That estimate included around a percentage point of estimated negative impact due to European Union regulation on CO2 emissions known as CAFE, the company said.
— Jenni Reid
Airbus profits fall as planemaker raises delivery target despite supply challenges
Airbus on Thursday reported an 8% year-on-year drop in adjusted operating profit to 5.35 billion euros ($5.58 billion) despite a 6% jump in revenue.
The annual figure was slightly below the 5.43 billion expected by analysts in an LSEG-compiled consensus, though the company’s fourth-quarter revenue and profit were just above consensus in a company-compiled poll. Earnings per share of 2.44 euros for the fourth quarter missed expectations of 2.46 euros.
The Toulouse, France-based planemaker also announced a closely watched target of 820 deliveries for 2025, above the 766 jets it delivered in 2024 but slightly behind the 825 expected by analysts. Last year, it was forced to trim its target of “near 800” deliveries in June, as supply chain snarls continued to plague the commercial aircraft sector.
On Thursday, it said supply challenges were challenging the ramp-up of production of its A350 and A220 models, and it pushed back the launch of its A350 freighter variant by around a year to the second half of 2027.
Profit at its defense and space unit swung to a loss of 656 million euros for the full year.
“While the initial 2025 guide brackets the low end of investor expectations, we believe the investor reaction to the [fourth quarter 2024] results will be positive, and confidence in the future production rates for commercial programs should be incrementally higher,” said RBC Capital Markets analyst Ken Herbert in a note to clients.
— Jenni Reid, Ganesh Rao
Schneider Electric posts record sales and profit figures, beating expectations
Schneider Electric reported record sales and profits, beating market expectations and its own targets.
The French industrial giant said its net profit for 2024 rose to 4.27 billion euros ($4.45 billion) from 4 billion euros in the prior year, beating analyst expectations of 4.2 billion euros, according to FactSet.
Sales rose 6.3% to 38.15 billion euros, beating market expectations of 37.6 billion euros.
Looking ahead, the company said it expects adjusted organic growth between 10% and 15%, driven partly by sales as well as margin improvement.
Schneider Electric has been a big beneficiary of the artificial intelligence trend as investors have rushed into the stock. It’s French listing rose by 39% in 2023, followed by 33% in 2024.
— Ganesh Rao
China keeps benchmark lending rates steady as PBOC prioritizes financial stability
China kept its key lending rates unchanged Thursday, as Beijing prioritizes financial stability over interest rate easing to bolster the economy.
The People’s Bank of China held the 1-year loan prime rate unchanged at 3.1%, and the 5-year LPR at 3.6%
The benchmark lending rates — normally charged to banks’ best clients — are calculated monthly based on designated commercial banks’ proposed rates submitted to the PBOC. The one-year LPR influences corporate loans and most household loans in China, while the five-year LPR serves as a benchmark for mortgage rates.
The decision on Thursday was in line with expectations Reuters poll estimates.
Read the full story here.
— Anniek Bao
Trump says he’s considering giving 20% of DOGE savings to Americans
U.S. President Donald Trump speaks at an FII Priority Saudi Investment summit in Miami, Florida, U.S., Feb. 19, 2025.
U.S. President Donald Trump said during his remarks at the FII Priority Summit in Miami Beach, Florida, on Wednesday that he is thinking of sending 20% of the money saved by the so-called Department of Government Efficiency, or DOGE, to Americans.
“There’s even under consideration a new concept where we give 20% of the DOGE savings to American citizens and 20% goes to paying down debt,” Trump said during his speech at the event.
The president’s comments come just a day after Elon Musk said in a post on social media site X that he “will check with the President” on a proposal to send U.S. households tax refund checks from the money saved by DOGE.
— Sean Conlon
S&P 500 notches another record close
The S&P 500 earned another record-high close on Wednesday as investors shook off worry tied to inflation and U.S. trade policy.
The broad market index added 0.24% to close at 6,144.15, while the Nasdaq Composite gained 0.07% to 20,056.25. The Dow Jones Industrial Average advanced 71 points, or 0.16%, to finish the session at 44,627.59.
— Brian Evans
European markets: Here are the opening calls
European markets are expected to open higher Thursday.
The U.K.’s FTSE 100 index is expected to open 10 points higher at 8,696, Germany’s DAX up 49 points at 22,475, France’s CAC up 16 points at 8,118 and Italy’s FTSE MIB 32 points higher at 38,437, according to data from IG.
Earnings are set to come from Accor, Schneider Electric, Mercedes, Zurich Insurance, Lloyds Banking Group, Centrica, Airbus, Hays, Anglo American, Renault, Repsol, Leonardo and Aegon. There are no major data releases Thursday.
— Holly Ellyatt
