European Stocks Mixed as Earnings Take Center Stage Ahead of ECB, BoE Decisions

European equity markets traded in a mixed fashion on Thursday, as investors weighed overnight weakness on Wall Street against a fresh round of corporate earnings, while looking ahead to key policy decisions from the European Central Bank and the Bank of England later in the day.

At 03:05 ET (08:05 GMT), Germany’s DAX slipped 0.2% and the U.K.’s FTSE 100 fell 0.4%, while France’s CAC 40 outperformed, gaining 0.6%.

Earnings in focus after tech-led selloff

Global sentiment has been dented by renewed concerns over the rising costs of artificial intelligence investments, which triggered a sharp sell-off in U.S. technology stocks overnight and spilled over into Asian markets earlier on Thursday.

Alphabet added to these worries late Wednesday, warning that its capital expenditure could nearly double this year as the Google parent ramps up spending to expand computing capacity and maintain its competitive position in the AI race.

In Europe, however, investor attention has largely shifted to corporate results, with a heavy slate of earnings from major companies.

Oil major Shell reported adjusted earnings of $3.26 billion for the fourth quarter, down from $3.7 billion a year earlier and marking its weakest quarterly profit in almost five years.

Danish shipping giant Maersk posted fourth-quarter operating profit broadly in line with expectations, but cautioned that falling freight rates and persistent industry headwinds are likely to weigh on earnings in 2026.

BNP Paribas raised its 2028 profitability target after fourth-quarter profit surged 28%, with France’s largest bank citing structural cost reductions and a more supportive interest rate backdrop as drivers of stronger long-term earnings.

Banco Bilbao Vizcaya Argentaria reported fourth-quarter net profit of €2.53 billion, up 4% year-on-year, as lending growth in Spain and Mexico offset higher loan-loss provisions.

Siemens Healthineers delivered solid first-quarter results, supported by strong demand for imaging systems and cancer therapy equipment, which helped offset weakness in its diagnostics division and currency-related pressures.

ECB, BoE decisions awaited

On the macro front, German industrial orders jumped 7.8% in December from the previous month, sharply beating expectations for a 2.2% decline and providing a positive signal for Europe’s largest economy.

Later in the day, the European Central Bank is widely expected to keep interest rates unchanged at 2% for a fifth consecutive meeting. However, policymakers may face questions after eurozone inflation slowed to 1.7% year-on-year in January, down from 1.9% in December.

The Bank of England is also expected to leave its benchmark rate unchanged at 3.75%, as officials balance still-elevated inflation pressures against signs of a softening labor market.