European stocks slip marginally lower; earnings, growth data in focus

Published 30/07/2025, 08:04
© Reuters.

Investing.com - European stocks slipped marginally lower Wednesday as investors digested a deluge of corporate earnings, while awaiting key regional growth data as well as the conclusion of the latest Federal Reserve meeting. 

At 03:02 ET (07:02 GMT), the DAX index in Germany slipped 0.2%, the CAC 40 in France dropped 0.2% and the FTSE 100 in the U.K. fell 0.4%. 

Q2 corporate results 

The trade agreement between the U.S. and the European Union, announced over the weekend, has lifted sentiment in the European corporate sector, but the volatile nature of the Trump administration’s trade negotiations have already had an impact on corporate bottom lines in the second quarter.

UBS’s (SIX:UBSG) second-quarter profit more than doubled from a year earlier, as Switzerland’s largest bank joined other major banks in making the most of a surge in trading activity amid market turmoil.

HSBC (LON:HSBA) reported a 27% drop in first-half profit, hit by one-off charges related to its investment in China’s Bank of Communications, but also announced a fresh share buyback of up to $3 billion.

Adidas (OTC:ADDYY) said higher U.S. tariffs would add around €200 million ($231 million) to its costs in the second half, with the German sportswear giant adding that they had already impacted its second quarter results by "double-digit" millions of euros.

Mercedes-Benz (OTC:MBGAF) expects a profit margin of 4% to 6% for its car business this year, lower than the forecast it had pulled in April, in the German luxury car manufacturer’s first assessment of the damage from the U.S. trade war.

Porsche (ETR:PSHG_p) cut its full-year profitability target with the German luxury auto company reporting a €400-million ($462 million) hit from tariffs in the first half.

Aston Martin (LON:AML) lowered its profit view, with the luxury car maker citing "evolving and disruptive" U.S. tariffs, adding it now expects adjusted operating profit to roughly break even.

French consumer goods group Danone (EPA:DANO) reported second-quarter sales that beat expectations, boosted by strong demand in China for infant milk formula and medical nutrition products, offsetting weakness in coffee creamers amid a competitive U.S. market.

French fashion house Hermes (EPA:HRMS) impressed with a 9% rise in quarterly sales, showing the continued appetite from affluent shoppers for its coveted Birkin hand bags.

Rio Tinto (NYSE:RIO) reported its smallest first-half underlying profit in five years, as iron ore prices remained subdued due to oversupply concerns and soft China demand, offsetting higher earnings from its copper business.

French IT consulting firm Capgemini (EPA:CAPP) tightened its guidance for the current financial year, citing caution amid slowing demand in the second quarter.

Investors will also pay attention to corporate earnings across the pond, with tech megacaps Microsoft (NASDAQ:MSFT) and Meta (NASDAQ:META) due to report after the close Wednesday.

Eurozone growth data due

On the economic front, the main focus in Europe will be on the flash estimate of second-quarter growth in the eurozone, as investors seek guidance surrounding further interest rate decisions by the European Central Bank.

Data released earlier Wednesday showed that the French economy grew 0.3% in the second quarter, beating forecasts, as a rebound in household spending boosted the eurozone’s second-biggest economy.

German retail sales also rose more than expected in June, increasing by 1.0% compared with the previous month, ahead of the release of the country’s second-quarter gross domestic product number.

The ECB left its main interest rate unchanged at 2% last week, taking a break after a year of policy easing to wait for clarity over Europe’s future trade relations with the United States.

Across the Atlantic, the Federal Reserve concludes its latest policy meeting later in the session, and is also widely expected to leave interest rates unchanged. 

Crude eyes potential Russian sanctions

Oil prices paused for breath Wednesday after the previous session’s sharp gains as traders waited for developments surrounding the increased pressure on Russia to end the war in Ukraine.

At 03:02 ET, Brent futures gained 0.1% to $71.77 a barrel, and U.S. West Texas Intermediate crude futures rose 0.1% to $69.29 a barrel.

Both contracts had settled on Tuesday at their highest since June 20, having surged more than 3%, in the wake of Trump announcing he would start imposing additional measures on Russia if it did not make progress on ending the war within 10 to 12 days, shortening the earlier 50-day deadline.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.