Investing.com - European stock markets rose Thursday, as investors awaited a rate decision by the Bank of England while digesting a flurry of quarterly earnings reports.
At 06:05 ET (11:05 GMT), the DAX index in Germany climbed 0.8%, the CAC 40 in France gained 0.6% and the FTSE 100 in the UK rose 1.2%.
Bank of England set to cut rates
Investors in Europe are cautiously awaiting news from London, with the Bank of England widely expected to cut interest rates later in the session, its first easing of monetary policy this year.
This would only be its third cut since just after the start of the COVID-19 pandemic in 2020, while the European Central Bank has reduced rates five times since mid-2024.
The Bank of England’s benchmark Bank Rate stands at 4.75%, the highest among the major economies, but the British economy has barely grown since mid-2024, hit by worries about finance minister Rachel Reeves’ tax increases for employers and the risk of a global trade war led by US President Donald Trump.
But inflation remains an issue, likely limiting what Governor Andrew Bailey can provide in terms of future guidance for 2025, with markets having priced in more than 80 basis points worth of easing by the year-end.
Back in the eurozone, December retail sales fell 0.2% on the month, indicated that consumers in the region remain under pressure.
Quarterly earnings season in full flow
The quarterly earnings season is in full swing, with more corporate results from senior European companies for investors to digest Thursday.
ING (AS:INGA) stock fell 2.7% after the Dutch bank reported a 21% drop in profit in the fourth quarter of 2024 from the same period last year, driven by increased operating expenses, higher loan loss provisions, and a normalization of interest margins.
Societe Generale (OTC:SCGLY) stock soared 9% after the French lender announced it had doubled fourth-quarter profits after a recovery in its retail bank and increased equity market trading.
AstraZeneca (NASDAQ:AZN) stock rose 5% after the UK drugmaker reported better-than-expected profit and sales in the fourth quarter, as its blockbuster cancer drugs offset weakened China sales and the arrest of its top executive in the country.
Carlsberg (CSE:CARLb) stock rose 6% after the Danish brewer reported a 2.8% increase in full-year operating profit, falling short of expectations.
Siemens (ETR:SIEGn) Healthineers (ETR:SHLG) stock rose almost 6% after the German medical technology company reaffirmed its financial outlook for fiscal year 2025 following a strong start, with net income rising by 11% in the first quarter.
Maersk (CSE:MAERSKb) stock soared 9% after the Danish shipping giant announced a new $2 billion share buyback program and a hefty dividend.
Crude rebound after stockpiles-inspired drop
Oil prices edged higher Thursday, rebounding after the previous session’s slide as a large build in US crude stockpiles signalled weaker demand from the world’s largest consumer.
By 06:05 ET, the US crude futures (WTI) gained 0.8% to $71.62 a barrel, while the Brent contract rose 0.7% to $75.15 a barrel.
Oil prices had fallen more than 2% on Wednesday after the Energy Information Administration released its weekly report, revealing US commercial crude oil stocks rose by a substantial 8.7 million barrels last week, even more than the industry body American Petroleum Institute had indicated.
Prices have plunged about 10% from the 2025 highs on Jan. 15, five days before Donald Trump took over as US President, as investors weighed the implications of a new round of US-China trade tariffs, including duties on energy products.