Key Takeaways

• Mixed open across Europe: The Stoxx 600 rose 0.2%, Germany’s DAX gained 0.2%, France’s CAC 40 edged up 0.1%, while the U.K.’s FTSE 100 slipped 0.1%.
• Adidas dazzles: Shares jumped over 7% after better-than-expected first-quarter operating profit despite a “very volatile and heavily discounted” retail environment.
• UBS surges: The Swiss bank rallied after posting an 80% leap in first-quarter profit, fueled by trading and client activity driven by war-linked market volatility.
• Tech bright spots: STMicroelectronics hit its highest level since 2024 after beating Q1 estimates, while Airbus ticked higher on confirmation of its full-year delivery target.
• Mixed corporate showings: Mercedes-Benz edged up despite China competition pressuring revenue; Santander rose modestly after a 12.5% profit jump; GSK slipped over 3% and Aena fell post-results.
• Iran blockade looms: Trump has reportedly directed aides to prepare for an extended blockade of Iranian ports, with the WSJ noting limited options to end the conflict swiftly.
• Hormuz shut, oil elevated: The strait carrying a fifth of global oil remains virtually closed, keeping crude well above pre-war levels.
• Fed decision ahead: Markets brace for the FOMC verdict later today, with rates expected to hold steady and forward guidance in sharp focus.

European equities traded in choppy fashion at the start of Wednesday’s session as investors juggled a deluge of corporate earnings, fresh developments in the Middle East, and a series of looming central bank interest rate decisions.

By 03:04 ET (07:04 GMT), the pan-European Stoxx 600 had risen 0.2%, Germany’s DAX was up 0.2%, and France’s CAC 40 had edged 0.1% higher. The U.K.’s FTSE 100 was 0.1% lower.

Traders have been keeping a wary eye on the climb in oil prices stemming from the Iran war — a shock with the potential to ripple through everything from consumer inflation and corporate profits to the way central bank policymakers calibrate borrowing costs in the months ahead.

The diplomatic deadlock between the United States and Iran has shown little sign of easing. President Donald Trump has reportedly instructed his aides to begin preparing for an extended blockade of Iranian ports, with the White House appearing to face few viable options for bringing the conflict to a swift conclusion, according to the Wall Street Journal.

In the midst of this stalemate, the Strait of Hormuz — a critical artery carrying roughly a fifth of the world’s oil — remains virtually closed to tanker traffic. Crude prices have stayed well above pre-war levels as a result, keeping concerns about a global energy shock firmly in focus.

Earnings Parade Dominates Trading

With the Iran crisis casting a long shadow over the corporate outlook, a string of major European firms unveiled their latest quarterly results on Wednesday morning.

Adidas shares spiked by more than 7% in early trading in Germany after the athletic apparel giant delivered better-than-expected operating profit in the first quarter — a feat made all the more impressive against what the company described as a “very volatile and heavily discounted” retail backdrop.

Swiss banking heavyweight UBS also advanced after reporting an 80% surge in first-quarter profit, propelled by robust trading and client activity that was supercharged by war-linked market volatility.

STMicroelectronics gained as well, touching its highest level since 2024, after the chipmaker posted first-quarter results that comfortably surpassed analyst projections.

Airbus shares ticked higher, buoyed by the planemaker’s reaffirmation of its full-year aircraft delivery target despite an ongoing engine shortage at supplier Pratt & Whitney.

Mercedes-Benz edged higher even after the luxury German automaker reported a revenue decline driven largely by intense competition from China.

Banco Santander hovered just above the flatline after the Spanish lender posted a 12.5% jump in first-quarter underlying net profit.

GSK slipped by more than 3% despite the British drugmaker reaffirming its 2026 outlook for sales growth and core operating profit expansion.

Aena moved lower after the Spanish airport operator unveiled its first-quarter results.

Fed Decision in the Spotlight

Elsewhere, analysts are looking ahead to the Federal Reserve’s interest rate decision in the United States later in the day. The Fed is widely anticipated to leave rates unchanged, meaning much of the attention is likely to fall on how policymakers see borrowing costs evolving in the months ahead.