European Stocks Dip as Ukraine Peace Prospects Fade; U.K. Market Supported by Inflation Data

European equities traded mostly lower on Wednesday, weighed down by fading hopes for a Ukraine peace deal and cautious corporate sentiment, though U.K. shares found some support from stable inflation data that may ease pressure on the Bank of England.

At 07:05 GMT, Germany’s DAX slipped 0.2%, France’s CAC 40 declined 0.7%, while London’s FTSE 100 rose 0.5%, buoyed by strength in consumer and banking stocks.

Geopolitical Tensions Pressure Sentiment

Global markets turned defensive after the White House confirmed late Tuesday that a planned Trump–Putin summit was suspended, as Moscow rejected calls for an immediate ceasefire in Ukraine.
The decision followed an unproductive call between U.S. President Donald Trump and Russian President Vladimir Putin, and a separate meeting between Trump and Ukrainian President Volodymyr Zelenskiy, which failed to advance negotiations.
With diplomacy stalling, investors now see little prospect of a peace deal in the near term, reinforcing risk aversion across European markets.

Corporate Earnings Drive Stock Moves

Earnings reports dominated Wednesday’s session, with mixed performances across sectors.

• UniCredit (BIT:CRDI) gained after the Italian lender posted better-than-expected Q3 results and reaffirmed its annual and medium-term targets, keeping it on course for a record year.
• Barclays (LON:BARC) rose modestly after raising its full-year guidance and announcing a £500 million share buyback, even as quarterly pretax profit fell 7% year-on-year to £2.1 billion.
• Hermes (EPA:HRMS) outperformed luxury peers, reporting a 9.6% increase in Q3 sales, helped by resilient demand from wealthy Chinese consumers.
• Heineken (AS:HEIN) slumped after warning of a decline in 2025 beer sales, citing macroeconomic headwinds and persistent demand weakness.
• Reckitt Benckiser (LON:RKT) advanced after reporting stronger-than-expected Q3 sales and reaffirming its 2025 guidance, supported by solid demand in emerging markets.

U.K. Inflation Data Offers Relief

Economic data from the U.K. provided a rare bright spot.
Inflation remained unchanged at 3.8% in September, defying forecasts for an uptick to 4%, according to the Office for National Statistics. The steady print may give the Bank of England more confidence to maintain its policy rate at 4% at the next meeting, following two years of aggressive tightening.
The stability in prices supported the FTSE 100, particularly among consumer-facing and dividend-paying stocks.