Investing.com - European stock markets traded in tight ranges Wednesday, as investors digested more quarterly earnings reports.as well as regional economic activity data.
At 06:20 ET (11:20 GMT), the DAX index in Germany dropped 0.1%, the CAC 40 in France slipped 0.2%, while the FTSE 100 in the UK rose 0.1%.
Investors wary of global trade war
Investors remain cautious in Europe Wednesday, as the imposition of 10% tariffs on China’s imports by the Trump administration earlier in the week means the idea of a global trade war lingers.
US President Donald Trump has warned that the European Union is also in his sights for tariffs, stating on Monday that a move on EU goods imported into the US could happen "pretty soon".
Investors are also monitoring developments in the Middle East after President Trump’s surprise suggestion that the United States take over the Gaza strip and turn it into the Riviera of the Middle East.
Eurozone business activity returns to growth
Eurozone business activity returned to growth at the start of the year after two months of contraction as demand stabilised, a survey showed on Wednesday.
HCOB’s final composite Purchasing Managers’ Index for the bloc rose to 50.2 in January from December’s 49.6, matching a preliminary estimate and just above the 50 mark separating contraction from growth.
The expansion in the bloc’s dominant services industry was modest but helped offset an ongoing downturn in the beleaguered manufacturing sector. The services PMI came in at 51.3, just below December’s 51.6.
Elsewhere, French industrial production fell 0.4% on a monthly basis in December.
Banco Santander soars after record profits
There are more quarterly corporate results for investors to digest Wednesday, but sentiment has been hit by disappointing earnings from Google-owner Alphabet (NASDAQ:GOOGL) as it spends heavily on capex.
Santander (BME:SAN) stock soared over 6% after the Spanish lender reported record annual profits for the third consecutive year, helped by a strong commercial performance, with Spain’s largest bank announcing plans for over $10 billion in share buybacks.
Novo Nordisk (NYSE:NVO) rose 3% even after it forecast slower sales growth for 2025 than 2024, suggesting the Danish drugmaker, which sells weight management drug Wegovy, is losing its edge in the competitive obesity market.
Credit Agricole (OTC:CRARY) stock rose 1.7% after the French lender raised its dividend after reporting better-than-expected earnings on higher revenue in the final quarter of 2024, helped by a strong performance in its retail banking sector.
GSK (LON:GSK) stock climbed over 5% after the British drugmaker reported better-than-expected fourth quarter earnings, and lifted its long-term sales forecast amid progress in its late-stage drugs pipeline while announcing a $2 billion share buyback.
TotalEnergies (EPA:TTEF) stock rose 1.5% after the French energy giant raised its dividend, as it attempted to appease investors after a drop in fourth-quarter earnings caused by weaker oil prices and shrinking refining margins.
Crude slips on US stockpiles growth
Oil prices slipped lower Wednesday after higher-than-expected US crude inventories data raised concerns over consumption levels in the world’s largest consumer.
By 06:20 ET, the US crude futures (WTI) slipped 0.8% to $72.13 a barrel, while the Brent contract fell 0.7% to $75.64 a barrel.
Crude stocks rose by just over 5 million barrels in the week ended Jan. 31, according to data from the American Petroleum Institute, while gasoline inventories rose by a similar amount.
Official US government oil inventory data from the Energy Information Administration are due to be released later in the session.