Investing.com - European stocks traded in a mixed fashion Thursday, as investors digested a plethora of quarterly earnings from some of Europe’s biggest companies in the wake of the U.S. Federal Reserve’s decision to keep interest rates unchanged.
At 03:10 ET (08:10 GMT), the DAX index in Germany dropped 0.7%, while the CAC 40 in France gained 0.9% and the FTSE 100 in the U.K. rose 0.6%.
Fed keeps rates unchanged
The U.S. Federal Reserve held its benchmark interest rate unchanged at the conclusion of its latest policy-setting meeting on Wednesday, pausing after a series of cuts late last year.
Fed Chair Jerome Powell said policymakers needed greater confidence that inflation was moving sustainably toward the 2% target before easing policy further, while noting that economic growth remained resilient.
““Chair Powell’s decision to hold rates steady underscores a Federal Reserve that is increasingly cautious, internally divided, and intent on preserving credibility amid extraordinary political noise,” said David Millar, CIO at Catalyst Funds.
Market pricing from CME’s FedWatch tool showed traders expect the Fed to keep rates on hold in the near term, but deliver two more cuts later this year.
Back in Europe, the economic data slate includes eurozone consumer confidence and business sentiment data for January, which is expected to show an improvement.
Deutsche Bank reports record profits
Turning to the corporate sector, investors have numerous quarterly reports to wade through as the earnings season becomes more intense.
Deutsche Bank (ETR:DBKGn) reported a record-high pretax profit for the fourth quarter of 2025 on strength in its global investment operations, although the print was overshadowed by a recent police investigation on allegations of money laundering.
Nokia’s (HE:NOKIA) fourth-quarter operating margin fell to 8.8% from 14.4% a year earlier, pressured by €299 million in restructuring charges and integration costs from its Infinera acquisition.
The Finnish telecom equipment maker also warned that first-quarter 2026 net sales would "decline somewhat more than normal seasonality" - historically a 24% quarter-on-quarter drop.
Nordea Bank (HE:NDAFI) reported fourth-quarter net profit ahead of expectations, with the Nordic lender helped by a better-than-expected performance in both net interest income and fees.
ING (AS:INGA) reported a record annual profit for 2025 and said it would continue returning about half of its capital generation to shareholders, as the Dutch bank set out an outlook showing stable income and returns through 2027.
ABB (SIX:ABBN) reported a strong fourth quarter and the Swiss industrial automation and electrification group provided upbeat guidance for the start of 2026, capping a record year with strong orders, improving margins.
Roche (SIX:RO) reported a 58% rise in net profit in 2025 and forecast further sales and earnings growth in 2026, with the Swiss drugmaker benefitting from strong demand for newer medicines, which offset pressure from patent expiries, currency effects and pricing reforms in China.
French drugmaker Sanofi (EPA:SASY) said it expects sales to grow by a high-single-digit percentage in 2026, banking on strong demand for its blockbuster asthma drug Dupixent and some newer medicines.
STMicroelectronics (EPA:STMPA) reported a quarterly loss, with the semiconductor manufacturer forecasting a sequential decline in first-quarter revenue, as restructuring charges and weaker automotive demand weighed on results.
There were also earnings from some major tech companies on Wall Street for investors to wade through.
Meta Platforms (NASDAQ:META) stock jumped in post-market trading after the company delivered an upbeat revenue outlook, reinforcing enthusiasm around AI-driven advertising tools.
Tesla (NASDAQ:TSLA) also beat expectations, offering some support to growth stocks.
By contrast, Microsoft’s (NASDAQ:MSFT) shares slipped after its results highlighted rising costs linked to heavy AI investment, tempering broader sentiment toward the sector.
Crude surges on Iran concerns
Oil prices climbed strongly Thursday on increasing concerns the U.S. may carry out a military attack on Iran, potentially disrupting supply from this key Middle Eastern producer.
Brent futures gained 1.3% to $68.26 a barrel and U.S. West Texas Intermediate crude futures rose 1.5% to $64.18 a barrel.
Both contracts have climbed about 5% since Monday and are at their highest since September 29.
President Trump has increased the pressure on the Iranian regime to end its nuclear program, amid reports that he was considering new military action, with a naval group arriving in the region.
Iran is the fourth-largest producer among the Organization of the Petroleum Exporting Countries with output of 3.2 million barrels per day.
The crude market has registered strong gains this week as a winter storm in the U.S. has disrupted crude production, with estimates suggesting at least 2 million barrels of crude per day of production being taken offline in the past week.
