European stocks close mixed; corporate earnings, trade talks and ECB in spotlight

Investing.com - European stocks traded in a mixed fashion Thursday, as investors digested more corporate earnings, easing global trade tensions, regional growth data and a rate decision by the European Central Bank.

The DAX index in Germany gained 0.1%, while the CAC 40 in France dropped 0.5% and the FTSE 100 in the U.K. was flat. 

Uncertainty over U.S.-China trade deal 

Investors are carefully studying the results of a meeting between U.S. President Donald Trump and Chinese President Xi Jinping in South Korea earlier Thursday.

Trump described the trade talks with the Chinese president as “amazing”, announcing that he had reached a one-year agreement with Xi on rare earths and other critical minerals, and that Washington will cut fentanyl-related tariffs on Beijing to 10%.

However, the lack of concrete details on trade progress and Trump’s previous rhetoric regarding China have made investors cautious about the certainty of a deal.

Fed cuts, ECB holds  

The U.S. Federal Reserve lowered its benchmark rate by 25 basis points to a range of 3.75%-4.00% on Wednesday, as widely expected, marking its third cut this year.

But Chair Jerome Powell tempered market expectations for another move in December, saying a further reduction was “far from a foregone conclusion.”

The European Central Bank kept interest rates on hold Thursday for the third meeting in a row, as policymakers adjusted to an economic backdrop of low inflation and steady growth.

The ECB maintained its key deposit rate at 2%, the level it cut to in June, having halved this key rate from a record high of 4% in the space of around a year.

Shell reports bounce in profits 

There are more earnings to study in Europe Thursday, while investors will also digest a batch of Big Tech earnings from the likes of Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) on Wall Street.

Oil major Shell (AS:SHEL) reported a solid rebound in profitability in the third quarter of 2025, rising to $5.3 billion from $3.6 billion in the previous quarter and $4.3 billion a year earlier, driven by stronger trading, higher sales volumes, and favorable tax movements.

German auto company Volkswagen (ETR:VOWG) reported a third-quarter operating loss of €1.3 billion after being hit by heavy charges linked to U.S. tariffs and strategic changes at its Porsche unit.

Societe Generale (EPA:SOGN) reported higher-than-expected third-quarter profit, driven by cost savings and steady revenue growth across divisions, though the French lender did not announce a new share buyback despite a stronger capital ratio.

Automaker Stellantis (NYSE:STLA) reported a 13% year-on-year increase in revenues for the third quarter, marking the first top-line growth after seven quarters.

German sportswear maker Puma (ETR:PUMG) said that it would cut a further 13% of its workforce globally, equivalent to 900 jobs by the end of 2026, as its sales continued to decline.

Carlsberg (CSE:CARLb) posted third-quarter sales slightly below expectations and maintained its full-year earnings forecast as the Danish brewer flagged a continued challenging consumer environment.

Crude set for monthly losses 

Oil prices edged higher on Thursday following the easing global trade tensions, and remain on course for hefty monthly losses on the back of ongoing oversupply concerns. 

Brent futures rose 0.1% to $64.38 a barrel, and U.S. West Texas Intermediate crude futures gained 0.2% to $60.62 a barrel.

Both benchmarks are on track for declines of more than 3% in October, which would be their third consecutive month of losses.

Traders are now focusing on a meeting of the Organization of Petroleum Exporting Countries and allies, a group known as OPEC+, scheduled for November 2, where the alliance will likely announce another 137,000 barrels per day supply hike for December.