LONDON — European stocks opened higher on Wednesday as investors weighed fresh corporate earnings, new inflation data, and rising trade tensions.
By mid-morning, the pan-European Stoxx 600 gained 0.5%, with nearly all sectors and major regional indexes in positive territory.
Market Snapshot
- CAC 40 (France): 7,783.69 (+0.44%)
- FTSE MIB (Italy): 42,117.63 (+0.26%)
- FTSE 100 (UK): 9,255.58 (+0.14%)
- DAX (Germany): 23,735.88 (+0.07%)
- IBEX 35 (Spain): 15,216.00 (+1.28%)
- Stoxx Europe 600: 554.09 (+0.31%)
Corporate Movers
Novo Nordisk rose 3.5% after announcing plans to cut around 9,000 jobs.
Meanwhile, Inditex (Zara’s parent company) jumped 6.3% following its first-half earnings. Although second-quarter sales missed forecasts, the group highlighted strong demand for its new Autumn/Winter collections. Early third-quarter sales climbed 9% year-on-year.
In addition, Citi analysts described Inditex’s momentum as a “meaningful acceleration,” noting that trading had improved over the past five weeks.
Global Trade in Focus
Markets also reacted to reports that U.S. President Donald Trump urged the EU to impose tariffs of up to 100% on imports from China and India. He argued that their continued oil purchases from Russia required tougher penalties.
However, the proposal risks escalating global trade tensions at a delicate time for markets.
Inflation Watch
In China, consumer prices fell 0.4% year-on-year in August, deeper than the 0.2% decline economists expected.
By contrast, in the United States, investors are awaiting two key reports. The Producer Price Index (PPI) is due today, while the more closely watched Consumer Price Index (CPI) arrives tomorrow.
Economists expect monthly increases of 0.3%. If forecasts hold, headline inflation would rise to 2.9% annually, while core inflation would stay at 3.1%. Therefore, results in line with expectations could reinforce the case for another U.S. Federal Reserve rate cut next week.
U.S. and Asia-Pacific Markets
In Asia-Pacific trading, markets moved higher as investors digested China’s inflation figures.
Meanwhile, U.S. futures also edged up, with the S&P 500 modestly higher ahead of today’s inflation reports.
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