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European stock markets traded with mixed results on Thursday, with investor sentiment buoyed by fresh economic support measures from China while awaiting a keynote speech from President Donald Trump at the World Economic Forum in Davos.
Market Performance
- DAX (Germany): Rose 0.2%, hitting record highs earlier in the week.
- CAC 40 (France): Up 0.1%.
- FTSE 100 (UK): Fell 0.1%.
Chinese Measures Support Sentiment
China announced plans to guide state insurers and commercial insurance funds to increase investments in domestic stocks, signaling additional government intervention in its struggling equity market.
- This move highlights China’s focus on addressing its economic challenges, exacerbated by U.S. trade tariffs.
- Although the direct impact on European markets is limited, China’s economic health is critical, as it represents a major export destination for many European companies.
Focus on Trump’s Davos Address
Investors are closely watching President Donald Trump’s speech at Davos for insights into:
- Tariff Policies: Trump’s threats of universal tariffs on imported goods.
- Geopolitical Stance: Comments on the Ukraine-Russia war, Israeli-Palestinian relations, and China’s economic rivalry with the U.S.
- AI Spending: Markets have been buoyed by his announced plans for massive spending on artificial intelligence infrastructure.
Corporate News
- Puma (ETR:PUMG): Shares fell over 13% after reporting weaker-than-expected 2024 net profit and unveiling a cost-cutting program.
- AB Foods (LON:ABF): Dropped 0.2% as the company cut its 2025 sales growth forecast for Primark, citing weak consumer sentiment and mild autumn weather.
- Essity (ST:ESSITYb): Slumped 5% after fourth-quarter core earnings missed estimates due to high raw material costs in its tissue business.
Norges Bank Policy Meeting
The Norwegian central bank is expected to maintain its current interest rate, with no significant economic data releases scheduled in Europe for the day.
European markets remain underpinned by optimism over fiscal spending plans in the U.S. and China’s ongoing stimulus measures. However, volatility persists as investors await clarity on Trump’s policies and their potential impact on global trade and economic growth.
