European Stocks Rise Amid Earnings Reports and Trade Uncertainty

European stocks experienced a positive rally on Thursday, with investors focused on a steady stream of new corporate earnings amidst ongoing uncertainty surrounding trade negotiations. At 03:15 ET (07:15 GMT), the DAX in Germany gained 0.7%, the CAC 40 in France rose by 1.2%, and the FTSE 100 in the U.K. climbed 0.4%.

European equities have been on edge this week after U.S. President Donald Trump announced plans to impose 30% tariffs on imports from the European Union, effective from August. These comments came shortly after Trump stated that the U.S. was close to finalizing a trade deal with India and possibly with Europe as well. These remarks are seen as providing a potential glimmer of hope for de-escalating trade tensions. Meanwhile, EU trade chief Maros Sefcovic was en route to Washington for tariff discussions.

Corporate Earnings Drive Market Sentiment
There was a slew of corporate earnings reports from European companies on Thursday that captured investor attention:

• Publicis raised its full-year organic growth forecast after reporting stronger-than-expected second-quarter results, buoying market sentiment.
• Novartis posted a 24% increase in second-quarter net income, driven by strong U.S. sales of key therapies such as Kisqali and Entresto.
• Volvo Cars reported a significant drop in second-quarter adjusted operating profit, citing ongoing demand pressure due to tariffs.
• Nordea Bank saw a 6% decline in second-quarter net profit, as the Nordic bank faced challenges from lower policy rates and financial market volatility.
• ABB reported its highest-ever quarterly order intake, with the Swiss engineering group benefiting from surging demand from the U.S. and for products used in data centers supporting artificial intelligence.

Earlier in the session, Taiwan Semiconductor Manufacturing posted a sharp rise in second-quarter net profit, beating market expectations, as the chipmaker continued to benefit from strong demand related to artificial intelligence technologies. Investors are also closely monitoring results from U.S. companies, including streaming giant Netflix.

Eurozone Inflation Data Due
Later in the session, the final release of eurozone consumer inflation for June is expected, with analysts anticipating a confirmation of last month’s reading at 2.0% year-on-year, up from 1.9% in May. This data is important for the European Central Bank’s ongoing policy considerations.

In the U.K., data showed that annual wage growth, excluding bonuses, slightly exceeded expectations, rising to 5.0% for the three months to May. However, the overall trend indicated that the U.K. labor market is cooling, with data suggesting that the pace of growth may slow further in the coming months.

The combination of corporate earnings, ongoing trade developments, and key economic data is likely to continue driving market sentiment in the short term.