European Stocks Slip as Investors Weigh Mixed Earnings, Trade Uncertainty

European equity markets edged lower on Thursday as a cautious mood lingered, driven by mixed corporate earnings and uncertainty surrounding U.S. trade policy toward China.

The pan-European STOXX 600 index slipped 0.3% by 07:14 GMT, retracing some of Wednesday’s gains, which had been fueled by a more conciliatory tone from Washington regarding the ongoing U.S.-China trade dispute.

Cautious Optimism Around Trade Talks

Markets remain sensitive to the evolving stance of U.S. President Donald Trump. Last week’s sharp criticism of Federal Reserve Chair Jerome Powell rattled investors globally, but the president’s decision to walk back calls for Powell’s resignation helped calm markets earlier this week.

However, the outlook for global trade remains murky. Although the White House has recently signaled openness to de-escalating tariffs on Chinese imports, no concrete steps have been taken. The trade standoff has already caused the STOXX 600 to fall nearly 18% from its record highs earlier this month, amid mounting fears of a global economic slowdown.

Corporate Earnings in Focus

A flurry of first-quarter earnings reports added to the mixed sentiment:

• Adidas rose 1.9% after the German sportswear giant beat expectations on both sales and profit, driven by resilient demand and improving margins.
• BNP Paribas dropped 2.3% despite reporting earnings in line with forecasts. Investors appeared disappointed by lackluster forward guidance.
• Kering fell 4% after the French luxury group posted a sharper-than-expected revenue decline, citing a slowdown in key Asian markets.

German Ifo Data Eyed

Later in the day, all eyes will be on the German Ifo business climate index, expected to show a decline in business sentiment for April. The release comes on the heels of disappointing PMI data from both the eurozone and the UK, which revealed weakening economic momentum.

Outlook

With sentiment still fragile, investors are looking for clearer signals on monetary policy and trade developments. European markets are likely to remain rangebound until there is greater clarity on the direction of U.S. tariffs and the broader health of the global economy.