This is CNBC’s live blog covering European markets.
European stock markets are likely to open flat on Friday after a sell-off on Wall Street as earnings remain in focus for investors.
The regional Stoxx 600 is set to open flat, the FTSE 100 lower by 0.28% and the DAX higher by 0.3%, according to CNBC’s calculation of FactSet futures data. Meanwhile, France’s CAC 40 and Italy’s MIB are expected to rise by about 0.3%
European firms Kingspan Group, Standard Chartered, Air Liquide, Sika AG and others are set to report their fourth-quarter earnings.
Overnight in the United States, the three major averages closed lower after the S&P 500 hit record highs for two consecutive days. Investors sold off shares of some popular companies following a weak forecast from retail giant Walmart, which raised concerns about the economic outlook.
The Dow Jones Industrial Average lost 450.94 points, or 1.01%, to end at 44,176.65. The S&P 500 shed 0.43% and closed at 6,117.52, and the Nasdaq Composite dipped 0.47% and closed at 19,962.36.
In Asian markets, Hong Kong’s Hang Seng Index rose 2.98% to its highest level since February 2022, according to data from LSEG.
Shares of Hong Kong listed Alibaba rose 12.9% following a significant profit increase for the company in the December quarter, driven by growth in its Cloud Intelligence division and e-commerce sector.
Standard Chartered beats market expectations
Standard Chartered has beaten market forecasts with its latest results, as the bank made $1.6 billion for the fourth quarter before setting aside money for bad loans.
The bank did particularly well in its wealth management arm, according to Jefferies analysts, where income rose by more than a third compared with the same period last year. “Wealth Solutions revenue was a standout performance +36% YoY, as were Financial Markets revenues (+48%) – management call out a strong start to 2025 in both lines,” said Jefferies’ Joseph Dickerson.
The London-headquartered bank plans to buy back £1.5 billion ($1.9 billion) of its shares from investors, which is more than the $1.1 billion expected. That comes as the bank’s boss says the firm has made a strong start to 2025 across its main businesses.
“Good cost discipline has enabled us to generate positive income-to-cost jaws, even with continued underlying investments,” said Bill Winters, chief executive of Standard Chartered.
“Credit impairment rose 5 per cent year-on-year, mainly from higher charges in Wealth & Retail Banking (WRB), while Corporate & Investment Banking (CIB) benefitted from recoveries. The broader portfolios have proved resilient, and we remain vigilant in the face of a volatile global environment,” he added.
Analysts from JPMorgan say the results show Standard Chartered is on track to hit its return on tangible equity targets by 2026.
— Ganesh Rao
Stocks close lower
Stocks fell on Thursday as a weak outlook from Walmart pressured the broader market and worried investors about the health of earnings moving forward.
The Dow Jones Industrial Average slipped more than 450 points, or 1%, to close at 44,176.65. The Nasdaq Composite lost nearly 0.5% to end at 19,962.36, while the S&P 500 pulled back 0.4% to finish the session at 6,117.52.
— Brian Evans
