This is CNBC’s live blog covering European markets.
European markets traded higher on Wednesday as investors monitored a flurry of corporate earnings releases out of the region.
The pan-European Stoxx 600 index was up 0.75% at 10:55 a.m. London time, with most sectors and all major bourses in positive territory. German stocks continued the rally that began after Germany’s federal election over the weekend, with the Dax gaining 1.3%.
Earnings were in the spotlight Wednesday, with releases coming from Adecco Group, AB InBev, E.On, Danone, Munich Re, Uniper, Stellantis, Wolters Kluwer, Aston Martin Lagonda Global Holdings, Covestro and Deutsche Telekom.
Austrian construction supplier Wienerberger was the best performer on the Stoxx 600 on Wednesday, with shares of the firm jumping 12.6% after the company raised its dividend and reported a 7% year-on-year jump in annual revenue.
Recruitment giant Adecco also moved toward the top of the index, with shares gaining 9% after the firm cut dividends and reported a 14% annual drop in full-year operating income. Adecco said in its earnings report that it had surpassed its target for general and administrative savings, delivering savings of 174 million euros in 2024.
Budweiser maker AB Inbev stock gained 7% after the company reported better-than-expected fourth-quarter sales.
Asia-Pacific markets traded mixed overnight, with sentiment weighed on by further losses on Wall Street Tuesday after the U.S. consumer confidence reading came in much weaker than economists’ estimates.
U.S. stock futures rose overnight, however, with investors awaiting earnings from market bellwether Nvidia after the closing bell Wednesday. The report could be the next catalyst for the market.
Trump copper tariff review lifts mining stocks
Europe-listed mining firms were broadly higher in morning deals, after U.S. President Donald Trump ordered a wide-ranging review into copper, including whether tariffs or quotas were needed to protect national security.
Shares of London-listed Chilean miner Antofagasta were 2.5% higher at 11:00 a.m. in London, while Glencore rose 1.7%. Anglo American, which has two copper mining operations in Chile, was up 0.7%.
U.S. Comex copper futures were 3.85% higher Wednesday.
— Jenni Reid
Munich Re share price up 5% after yearly profit beat
Shares of German reinsurance giant Munich Re jumped 5% at 10:48 a.m. London time on Wednesday morning, after the company posted a 23% hike in full-year net profit.
The world’s largest reinsurer hovered around the top of the Stoxx 600 index after beating its annual profit target for the fourth year in a row. The company’s net profit came in a 5.67 billion euros ($5.95 billion), outperforming its initial guidance of 5 billion euros.
Its fourth-quarter net profit hit 979 million euros, down from 1 billion euros in the same period of last year. Munich Re noted that its fourth-quarter performance was hit by a series of severe weather disasters, with Hurricane Helene amounting to the company’s “most expensive single claims event in 2024,” while Hurricane Milton was “the costliest Q4 claims event.”
“In addition, there were numerous flood, thunderstorm and storm events, particularly in North America, the Caribbean and Europe,” the company said, flagging the Los Angeles blaze of January 2025 as “the most substantial wildfire losses in the history of the insurance industry.”
The company expects claims expenditure linked to the event to total 1.2 billion euros for property-casualty reinsurance and global specialty insurance.
— Sawdah Bhaimiya
BP announces ‘fundamental reset strategy’
The BP logo is displayed outside a petrol station on January 30, 2025 in Warrington, United Kingdom.
BP announced a “reset strategy” on Wednesday, which the company said would involve a significant reallocation of capital focused on growing its upstream oil and gas business.
The strategy will see the energy giant “significantly lower [capital expenditure] into transition businesses” and increase annual oil and gas investment to $10 billion through 2027.
Shares of BP were down 1.6% at 10:22 a.m. London time.
“We are reducing and reallocating capital expenditure to our highest-returning businesses to drive growth, and relentlessly pursuing performance improvements and cost efficiency,” CEO Murray Auchincloss said in a news release. “We will be very selective in our investment in the transition, including through innovative capital-light platforms.”
The move comes after reports that activist investor Elliott Management had taken a stake in BP and could put pressure on the firm to focus on its core oil and gas operations.
— Chloe Taylor
European construction stocks lead regional gains; Wienerberger tops Stoxx 600
The Stoxx Construction and Materials index saw the biggest sectoral gains during early trade on Wednesday, adding 1.9% by 10:04 a.m. London time.
Austrian construction supplier Wienerberger was the best performer on the Stoxx 600 on Wednesday, with shares of the firm jumping 12.7%. It came after the company raised its dividend and reported a 7% year-on-year jump in annual revenue.
CEO Heimo Scheuch said in a letter to shareholders that earnings before interest, taxes, depreciation, and amortization should rise to 800 million euros ($840 million) in 2025, after it fell 10% year-on-year to 706.6 million euros in 2024.
Heidelberg Materials, Kingspan Group and Munters Group were among the other firms in the sector seeing gains on Wednesday morning.
— Chloe Taylor
German consumers feeling more pessimistic: GfK
Shoppers in Munich, Germany, on Dec. 28, 2024.
German consumers became increasingly pessimistic this month, according to new research from GfK, Germany’s biggest market research firm.
In the latest update to its Consumer Climate monitor, GfK found that income expectations and willingness to buy had fallen for the second consecutive month — even as economic expectations improved. Consumers said they expected their personal financial situation to worsen over the coming year, with income expectations hitting a 13-month low.
Overall, the Consumer Climate measure fell to -24.7 points from -22.6 points a month earlier, GfK said.
GfK’s survey of around 2,000 German consumers was carried out between Jan. 30 and Feb. 10.
— Chloe Taylor
London-listed defense stocks continue to rally after Starmer announces defense spending hike
Keir Starmer delivers a speech on defence and security on Feb. 25, 2025.
U.K. Prime Minister Keir Starmer announced on Tuesday that his government would raise defense spending to 2.5% of GDP by 2027, telling lawmakers in parliament that this represented a £13.4 billion ($16.96 billion) annual increase from current spending levels.
“European countries must do more for their own defense,” he said during a press conference later on Tuesday. “So, subject to economic and fiscal conditions, we will also set a clear ambition for defense spending to rise to 3% of GDP in the next parliament.”
London’s FTSE Aerospace and Defense index was up by around 1.2% at 9:18 a.m. London time, continuing its move upward from a day earlier when the index gained 2.5%.
The U.K.’s Chemring Group, which supplies tech products to the aerospace, defense and security sectors, was the top mover in the index, gaining around 3.9%. Rolls Royce was up 1.2%.
— Chloe Taylor
Aston Martin to cut workforce by 5%
The Aston Martin DB12 Goldfinger Edition during the 007 takeover of Burlington Arcade on Oct. 29, 2024, in London, England.
Luxury carmaker Aston Martin said Wednesday that it plans to trim its global workforce by 5% as it looks to cut costs.
In its full-year earnings release, the company said it was commencing a restructuring process that would lead to around 170 job cuts, representing 5% of its employee base. That’s expected to deliver savings of approximately £25 million ($31.7 million), the firm said.
“After a period of intense product launches, coupled with industry-wide and Company challenges, our focus now shifts to operational execution and delivering financial sustainability,” CEO Adrian Hallmark said in a statement.
The announcement came as Aston Martin reported a £99.5 million loss for 2024, an 11% improvement from a year earlier. Fourth-quarter profit came in at £33.3 million.
Shares were down almost 4% by 8:40 a.m. London time.
— Chloe Taylor
Adecco CFO says dividend cut difficult but necessary after drop in profit
Recruitment giant Adecco reported a 14% annual drop in full-year operating income on Wednesday, while net income fell 7% from a year earlier to 303 million euros ($318 million) in 2024.
The Swiss company said it would update its dividend policy, leading to a proposed dividend payout of 1 Swiss franc ($1.12) per share. A year earlier, dividends had been 2.50 Swiss francs per share.
Chief Financial Officer Coram Williams told CNBC’s “Squawk Box Europe” on Wednesday that the firm was “pretty pleased” with its 2024 earnings, before discussing the dividend cut.
“We have taken the decision to update our dividend policy this morning … we’re now 40% to 50% payout ratio on adjusted EPS (earnings per share), but with no floor,” he said. “We think that’s the right thing to do because, ultimately, we are a highly cash generative but cyclical business, and it will really help us accelerate deleveraging.”
“We’ve got a clear commitment to get the leverage at or below 1.5 times net debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) by the end of 2027,” he added. “We understand this is difficult, but I think people will agree that this is necessary.”
— Chloe Taylor
Global debt levels hit $318 trillion in 2024: IIF
Global debt levels added nearly $7 trillion to a record $318 trillion in 2024, the Institute of International Finance said, while warning that bulging borrowing levels could lead to the return of bond vigilantes.
The global debt-to-GDP ratio rose to nearly 330% of GDP last year, marking the first annual increase in debt ratios since the start of the Covid-19 pandemic.
The IIF adds it expects global debt accumulation to slow down in the months ahead, particularly in the first half of the year, as borrowing costs remain elevated.
— Jordan Butt
Stellantis posts 70% drop in full-year profit
Auto giant Stellantis on Wednesday reported a sharp drop in full-year earnings as the company scrambles to take measures to improve its performance and profitability.
The mutlinational conglomerate, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, posted full-year 2024 net profit of 5.5 billion euros ($5.77 billion), down 70% from 18.6 billion euros across full-year 2023.
Analysts had expected full-year 2024 net profit to come in at 6.4 billion euros, according to an LSEG-compiled consensus.
Shares of the Milan-listed company are up over 7% year-to-date.
— Sam Meredith
World’s largest brewer AB InBev posts fourth-quarter revenue beat
Budweiser beer in the brewery section at an H-E-B grocery store on March 02, 2023 in Austin, Texas.
World’s largest brewer AB InBev on Wednesday posted better-than-expected fourth-quarter sales despite an annual decline in volumes.
The drinks maker, whose brands include Budweiser, Corona and Stella Artois, reported an 3.4% increase in fourth-quarter revenue to $14.84 billion, versus the 2.9% decline to $14.05 billion forecast by LSEG analysts.
Full-year sales rose by 2.7% to $59.77 billion, compared to the $59.3 billion performance expected by analysts.
— Karen Gilchrist
European markets: Here are the opening calls
European markets are expected to open higher Wednesday.
The U.K.’s FTSE 100 index is expected to open 36 points higher at 8,681, Germany’s DAX up 127 points at 22,513, France’s CAC 30 points higher at 8,076 and Italy’s FTSE MIB 126 points higher at 38,911, according to data from IG.
Earnings are set to come from Adecco Group, AB InBev, E.On, Danone, Munich Re, Uniper, Stellantis, Wolters Kluwer, Aston Martin Lagonda Global Holdings, Covestro and Deutsche Telekom.
Data releases include the latest German and French consumer confidence figures.
— Holly Ellyatt
