European stocks mixed; French market in spotlight

Investing.com - European indices were mixed on Wednesday, following steep losses earlier this week due to the threat of a new trade dispute between the U.S. and China, with French politics to the fore.

The DAX index in Germany fell 0.1%, the CAC 40 in France soared 2% and the FTSE 100 in the U.K. declined 0.4%. 

The regional indices touched two-week lows on Tuesday after relations between Washington and Beijing soured again last week as U.S. President Donald Trump threatened the Asian giant with a fresh wave of tariff increases after China imposed new export controls on rare earth minerals.

Trump escalated rhetoric on Tuesday by suggesting that Washington could cut trade ties with China in the cooking-oil sector, calling Beijing’s recent reduction in soybean imports an “economically hostile act.”

French market in spotlight 

European stock markets have benefited Wednesday following comments from Jerome Powell, in which the Federal Reserve chief indicated that the U.S. economy was on firmer footing even as he cautioned that a notably softer labor market was emerging.

The comments were interpreted as signaling that the Fed may cut rates again later this year. 

Back in Europe, the French market will be in the spotlight after Prime Minister Sebastien Lecornu, reappointed on Friday having quit at the start of last week, promised on Tuesday to suspend a controversial pension reform until after the 2027 election.

French Prime Minister Sebastien Lecornu offered to shelve a landmark pension reform until after the 2027 presidential election, caving to pressure from leftist lawmakers in a bid to shore up his fragile political standing.

The move comes as France grapples with its deepest political crisis in decades, with successive minority governments seeking to pass deficit-cutting budgets through a fractured parliament split into three warring ideological camps.

Consumer pricesin France rose 1.1% year-on-year in September, statistics office INSEE said on Wednesday, confirming the preliminary reading published last month.

ASML warns of Chinese hit

In corporate news, Dutch semiconductor equipment maker ASML Holding (AS:ASML) warned of a significant decline in China sales expected in 2026 compared with its business in the region during 2024 and 2025, despite reporting quarterly bookings above expectations on Wednesday.

Betting company Entain (LON:ENT) reported a 6% increase in net gaming revenue in the third quarter, driven by solid momentum in its online business, while recruitment company Pagegroup (LON:PAGE) reported a decline in third-quarter profit, with stronger performances in the U.S. and parts of Asia unable to offset softer conditions in Europe.

Crude weakened further

Oil prices slipped lower on Wednesday, extending the previous session’s losses after the International Energy Agency warned of a supply surplus in 2026.

Brent futures dropped 0.6% to $61.96 a barrel, and U.S. West Texas Intermediate crude futures fell 0.6% to $58.37 a barrel.

Both benchmarks closed at five-month lows in the previous trading session.

The International Energy Agency said on Tuesday the global oil market could face a surplus next year of as much as 4 million barrels per day, a bigger glut than it had earlier forecast.