Europe’s Stoxx 600 climbs as investors sift through earnings deluge

Investing.com - European markets moved mostly higher on Thursday, as investors eyed a raft of major earnings and weighed geopolitical uncertainty and trade tensions.

As of 05:46 ET (10:46 GMT), the pan-European Stoxx 600 was trading 0.3% higher, Germany’s DAX had risen 0.5%, and the CAC 40 in France had gained 0.6%. Meanwhile, the UK’s FTSE 100 lagged, dipping 0.2%.

Among a slate of upbeat quarterly corporate returns, French industrial giant Schneider Electric (EPA:SCHN) posted record sales of 38.15 billion euros and a net profit of 4.27 billion euros, both beating forecasts. It expects 10-15% organic growth ahead.

Airbus (EPA:AIR) reported an 8% drop in adjusted operating profit to 5.35 billion euros, missing analyst projections. The planemaker aims to deliver 820 jets in 2025, but cited supply chain issues and delayed its A350 freighter launch to late 2027.

Car manufacturer Renault ’s (EPA:RENA) annual operating profit hit an all-time peak, while revenue jumped by 7.4% to 56.2 billion euros. However, net income fell to 891 million euros following a 2 billion euros loss from its sale of stake in Japan’s Nissan (TYO:7201).

German automotive firm Mercedes Benz (ETR:MBGn) said it would push to cut more costs to help boost sales and margins following a 40% decrease in profit at its key car unit in 2024. Heavy competition in China and tepid demand in Europe dented performance at the division.

These headwinds have been compounded by fresh pressure from possible U.S. tariffs. Last week, Trump said he intends to roll out new auto tariffs "in the neighborhood of 25%" as soon as April 2, a move that Germany’s car lobby criticized as a "provocation."

Separate plans from Trump to introduce sweeping levies on steel and aluminum products also weighed on Tenaris (BIT:TENR), with the Italian steel pipe maker saying the duties may lead to a "high level of uncertainty."

Meanwhile, defense stocks sank. The sector had surged earlier this week, powered gains in broader European equities to around all-time highs, as markets gauged a potential increase in military spending on the continent as well as talks between the U.S. and Russia on ending the war in Ukraine. Analysts have said recent actions by the Trump administration suggest that European leaders may no longer be able to rely on the U.S. as a security backstop.    

Elsewhere, oil prices were higher. after they reached an almost one-week high on Wednesday. At 06:08 ET, the Brent oil contract had risen 0.3% to $76.27 per barrel, while West Texas Intermediate oil futures were up 0.2% to $72.26 per barrel.

(Scott Kanowsky contributed reporting.)