European Markets Mixed as Earnings Take Center Stage After Fed Pause

European stocks traded in mixed fashion on Thursday, as investors digested a wave of corporate earnings following the U.S. Federal Reserve’s decision to keep interest rates unchanged.

By mid-morning, Germany’s DAX slipped 0.7%, while France’s CAC 40 gained 0.9% and the U.K.’s FTSE 100 rose 0.6%.

The Federal Reserve held rates steady on Wednesday, with Chair Jerome Powell stressing the need for clearer evidence that inflation is moving sustainably toward the 2% target before any further easing. Markets now expect rates to remain on hold in the near term, with two cuts still priced in later this year.

In Europe, attention turned back to earnings. Deutsche Bank posted a record fourth-quarter pretax profit on the strength of its investment banking arm. ING reported a record annual profit and reaffirmed plans to return about half of its capital generation to shareholders. ABB delivered strong quarterly results and issued upbeat guidance for early 2026, while Roche forecast further growth this year after a sharp rise in 2025 profit.

Elsewhere, Nokia warned of a softer-than-usual first quarter, STMicroelectronics reported a quarterly loss, and Sanofi projected high single-digit sales growth for 2026 on strong demand for its flagship drugs.

Oil prices added to market dynamics, climbing sharply on renewed fears of a potential U.S. military strike on Iran. Brent rose to around $68 a barrel, while WTI advanced toward $64, with both benchmarks up about 5% since the start of the week. Concerns over Middle East supply risks, combined with production disruptions from a U.S. winter storm, have driven crude to its highest levels since late September.

With central bank uncertainty easing for now, European markets remain guided by earnings momentum and rising geopolitical risk.