European stocks mostly lower; U.K. rallies after CPI data

Published 22/10/2025, 08:20
Updated 22/10/2025, 17:22
© Reuters.

Investing.com - European stocks traded mostly lower on Wednesday as investors digested reduced chances of peace in Ukraine, while benign inflation data helped the U.K. market.

The DAX index in Germany dropped 0.7%, the CAC 40 in France slipped 0.6%, while the FTSE 100 in the U.K. gained 0.9%. 

Peace in Ukraine looks unlikely 

The White House announced late Tuesday that a planned summit between U.S. President Donald Trump and Russian President Vladimir Putin had been put on hold after Moscow rejected calls for an immediate ceasefire.

Trump, who last week spoke by phone to Putin and met Ukrainian President Volodymyr Zelenskiy, had hoped for another meeting with the Russian leader after their August summit in Alaska failed to advance negotiations.

Investors now see the prospect of a peace deal for Ukraine as slim in the immediate future, weighing on global sentiment.

UniCredit on track for record year 

Elsewhere, investors are studying a plethora of corporate earnings as the new quarterly season hits full stride.

UniCredit (BIT:CRDI) said it remains on course for a record year after the Italian bank reported third-quarter earnings that topped forecasts and reaffirmed both its annual and medium-term targets.

Barclays (LON:BARC) lifted its full-year guidance and announced a £500 million share buyback, even as the British lender reported pretax profit for the third quarter at £2.1 billion, a 7% decline from the same period in 2024. 

Hermes (EPA:HRMS) signalled a slight improvement in key market China as the luxury group reported a 9.6% rise in third quarter sales, outpacing peers as rich shoppers splashed out on its $10,000 handbags.

Heineken (AS:HEIN) warned its 2025 beer sales would fall as macroeconomic challenges worsened, with the Dutch brewer further downgrading its volume guidance after it was punished for a similar move a quarter ago.

Consumer goods maker Reckitt Benckiser (LON:RKT) reported stronger-than-expected third-quarter sales on Wednesday and reaffirmed its 2025 guidance, supported by robust demand in emerging markets and a rebound in its key developed regions.

U.K. inflation holds steady 

In economic news, data released earlier Wednesday showed that the annual rate of Britain’s consumer price inflation held at 3.8% in September, something of a surprise as it had been expected to rise to 4% last month. 

The Bank of England decided to keep interest rates unchanged at 4% at its September meeting, the lowest level for more than two years, with the benchmark Bank Rate having started 2025 at 4.75%. 

Crude soars on cancellation of Ukraine summit 

Oil prices soared on Wednesday, boosted by the cancellation of a U.S.-Russia summit as well as the announcement of a U.S. plan to refill strategic reserves. 

Brent futures gained 2.3% to $62.70 a barrel, and U.S. West Texas Intermediate crude futures also rose 2.5% to $58.65 a barrel.

A planned summit between U.S. President Donald Trump and Russian counterpart Vladimir Putin was put on indefinite hold on Tuesday, as Moscow rejected calls for an immediate ceasefire in Ukraine. 

A prolonged conflict points to more potential disruptions in oil supplies, especially as Kyiv began heavily targeting Moscow’s energy infrastructure this year. 

Oil was also encouraged by industry data showing a draw in U.S. inventories, while the U.S. Department of Energy announced on Tuesday plans to buy one million barrels of crude oil for delivery to the Strategic Petroleum Reserve.

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