European stock markets are set to open in positive territory on Thursday, as investors navigate a packed day featuring crucial interest rate decisions from several key central banks, including the Bank of England, alongside a continued flood of corporate earnings reports.
Early indicators point towards gains across major European bourses.
According to data from IG, the UK’s FTSE 100 is expected to open 46 points higher at 8,586, Germany’s DAX is projected to gain 147 points to 23,263, France’s CAC 40 is seen rising 45 points to 7,662, and Italy’s FTSE MIB is anticipated to add 230 points to 37,960.
The primary focus for market participants today will be monetary policy announcements. Decisions are due from Sweden’s Riksbank and Norway’s Norges Bank.
However, the most closely watched announcement will come from the Bank of England (BoE), which is widely anticipated by market participants to cut interest rates at today’s meeting.
These central bank decisions come just a day after the US Federal Reserve opted to hold its rates steady.
Fed holds, Powell warns on tariffs
Overnight, the US Federal Open Market Committee (FOMC) maintained its benchmark overnight borrowing rate in the 4.25% to 4.5% range, a decision largely expected by markets.
In his subsequent press conference, Fed Chair Jerome Powell reiterated a cautious stance, warning that the significant tariff hikes already announced by the Trump administration, if maintained, could potentially slow economic growth and contribute to higher long-term inflation.
He stressed the Fed’s data-dependent approach amidst rising risks to both employment and inflation. US stock futures were relatively unchanged in overnight trading following the Fed’s announcement.
Asia-Pacific markets presented a mixed picture overnight. Investors digested the Fed’s decision while keeping a close watch on developments related to the upcoming US-China trade talks scheduled for this week in Switzerland, involving US Treasury Secretary Scott Bessent and Chinese counterparts.
European earnings continue to flow
Domestically, the European earnings season remains in full swing.
Today promises another busy schedule, with results expected from major companies spanning various sectors.
Key reports are due from shipping giant Maersk, energy technology firm Siemens Energy, building materials company Heidelberg Materials, consumer goods maker Henkel, semiconductor firm Infineon, specialty chemicals company Lanxess, sportswear brand Puma, defence contractor Rheinmetall, technology group Bosch, airline Norwegian Air, telecom operator Swisscom, insurer Zurich Insurance, staffing firm Adecco Group, InterContinental Hotels Group, and Spanish bank Banco Sabadell.
Early earnings highlights: Sabadell beats, Siemens Energy cautious
Among the early reporters, Banco Sabadell delivered strong first-quarter results Thursday morning.
The Spanish lender posted a net profit of 489 million euros ($552 million), representing a 58.6% jump year-on-year and comfortably exceeding analyst forecasts of 405.9 million euros.
Sabadell is currently navigating a hostile €12 billion takeover bid from rival BBVA.
Siemens Energy also reported results, posting a better-than-expected 20.7% annual increase in quarterly revenue (to €10 billion) and a significant jump in net income (€501 million vs €108 million YoY).
This led the company to upgrade its full-year guidance for revenue growth and net income.
However, Siemens Energy explicitly warned that President Trump’s tariff regime is expected to directly impact its bottom line in the second half of fiscal 2025, estimating a potential profit hit “up to a high double-digit million € amount,” even after mitigation measures.
UK-US trade deal buzz
Adding another layer of interest, particularly for the UK market, are reports suggesting Britain is poised to become the first country to sign a post-tariff announcement trade deal with the United States.
The New York Times reported this development following comments from President Trump Wednesday night hinting at an upcoming trade deal briefing.
While official confirmation is awaited (CNBC received no immediate comment from the White House or UK embassy), a spokesperson for the UK’s Department for Business and Trade confirmed to CNBC that talks on an economic deal are “ongoing.”
As European markets open, investors will weigh the implications of the central bank decisions, digest the diverse corporate earnings reports, and continue to monitor global trade developments.
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