European Stocks Rebound as Investors Buy the Dip Ahead of Nvidia Earnings

European Stocks Rebound as Investors Buy the Dip Ahead of Nvidia Earnings

Pan-European Recovery
European equities edged higher on Wednesday, rebounding from their largest drop in nearly a month. The STOXX 600 index rose 0.4% by 07:07 GMT, with Germany, Italy, and Spain adding between 0.1% and 0.3%.

French Political Risks Under Watch
France’s CAC 40 gained 0.4%, recovering from a three-week low hit after fears of a potential government collapse. Prime Minister Francois Bayrou announced a confidence vote for September 8 amid proposed sweeping budget cuts. Opposition parties have already signaled they won’t support him.

Analysts note that while much of the uncertainty is already priced in, French equities—especially banks and utilities—may remain under pressure until the vote’s outcome is clear. BNP Paribas and Societe Generale extended slim losses for a third consecutive session.

Focus on Nvidia Earnings
Investors are closely watching earnings from Nvidia, the world’s most valuable company, for fresh insights into the AI sector after technology stocks slowed in August.

Corporate Movers

• Orsted and Novo Nordisk climbed 3.5% and 2%, respectively, after lagging earlier in the week.
• Porsche rose 3.8% amid reports it is seeking a successor for CEO Oliver Blume, who will focus on leading Volkswagen.
• Rio Tinto shares gained nearly 1% following plans to restructure into three business units: Iron Ore, Aluminium & Lithium, and Copper.

Economic Sentiment
A survey showed German consumer sentiment is expected to decline for a third consecutive month in September, as concerns over potential job losses and inflation weigh on households’ outlook.