ICL Group signs binding asset agreement with Israel for $2.54 billion

Investing.com - European stocks slipped slightly lower Wednesday, as investors digested a flood of corporate earnings while cautiously awaiting the latest interest rate decision from the U.S. Federal Reserve.

At 03:02 ET (08:02 GMT), the DAX index in Germany dropped 0.1% and the CAC 40 in France slipped 0.5%, while the FTSE 100 in the U.K. traded largely unchanged. 

Fed meeting prompts caution  

Investors in Europe have shown a degree of caution ahead of the Federal Reserve’s interest rate decision later in the day, even as strong gains in technology and AI-related shares ahead of key U.S. megacap earnings lifted the benchmark S&P 500 index to record highs on Wall Street overnight.

The U.S. central bank is widely expected to keep interest rates unchanged later on Wednesday, and thus investors will likely focus on Chair Jerome Powell’s remarks for clues on the timing of potential rate cuts later this year.

Additionally, Powell’s term ends in May, and U.S. President Donald Trump said on Tuesday he will announce his pick for the new head of the Federal Reserve soon.

Trump has repeatedly pressed Powell to cut interest rates sharply, criticising the Fed head by claiming that he has been too slow in easing rates, creating concerns that his appointment of a replacement will result in a watering down of the independence of the central bank. 

German consumer sentiment rises

The mood among German consumers is set to improve in February, as the forward-looking GfK consumer sentiment index rose to -24.1 points in February from -26.9 points the month before, beating the expectations of a slight rise to -26.0 points.

The European Central Bank meets next week, and is widely expected to keep rates on hold at 2% for a fifth consecutive meeting with eurozone inflation remaining restrained and the region’s economy having proven more resilient than expected.

That said, ECB policymakers may need to consider another interest rate cut if further gains in the euro start to weigh on inflation, Austrian central bank governor Martin Kocher said in an interview with the Financial Times on Wednesday.

The euro rose to a more than four-year high on Tuesday as the dollar weakened amid investor concerns over U.S. policy risks and geopolitical tensions. 

ASML expresses confidence for 2026

Turning to the corporate sector, the earnings season has kicked into top gear in Europe, with ASML (AS:ASML) in the spotlight after the Dutch chipmaking equipment supplier beat fourth-quarter forecasts and offered upbeat guidance for 2026 after reporting a jump in orders. This has pointed to continued demand from makers of advanced chips used in artificial intelligence.

Volvo (ST:VOLVb) reported a smaller-than-forecast decline in fourth-quarter operating profit, but the Swedish truckmaker cut its overall annual dividend payment by more than expected.

Swiss contract drugmaker Lonza (SIX:LONN) projected 2026 sales growth of 11%-12% in constant exchange rates with core EBITDA margins expanding above 32%, maintaining strong momentum despite foreign exchange headwinds.

Wacker Chemie (ETR:WCHG) reported fourth-quarter earnings below expectations and the German chemicals maker provided limited details on a €300 million cost-cutting program.

Late Tuesday, LVMH (EPA:LVMH), the world’s largest luxury group, beat fourth-quarter sales forecasts, boosting hopes of a luxury sector rebound even as trade tensions, a weaker dollar and high gold prices squeezed margins.

There are also some major companies reporting on Wall Street, with tech giants Meta Platforms (NASDAQ:META), Tesla (NASDAQ:TSLA) and Microsoft (NASDAQ:MSFT) all set to release quarterly earnings after the close.

U.S. winter storm in spotlight

Oil prices mostly maintained recent gains Wednesday, as trader reacted to the severe winter storm in the U.S.. 

Brent futures slipped 0.1% to $66.50 a barrel and U.S. West Texas Intermediate crude futures rose 0.1% to $62.45 a barrel.

Both benchmarks surged about 3% on Tuesday, after closing at the end of last week at their highest points since January 14. 

Estimates suggest U.S. producers lost up to 2 million barrels per day, or roughly 15% of national output, as the storm disrupted energy infrastructure and power grids.

Investing.com -- Mr Price Group Ltd (JO:MRP) announced a 3.6% increase in third-quarter retail sales to R15.1 billion, according to a company statement on Wednesday.

The South African retailer noted that the discretionary retail consumer environment remained muted throughout most of 2025.

In the first four weeks of January 2026, the group delivered solid sales growth of 4.2%, showing a slight improvement from the third-quarter performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Ecora Royalties Plc on Wednesday delivered a stronger-than-expected fourth quarter performance, with results exceeding both analyst and market forecasts by 4% and 2% respectively.

The company’s strong finish to the year was primarily driven by impressive results from its base metal division, which outperformed Royal Bank of Canada estimates by 29% and consensus expectations by 22%.

Contrary to expectations of a quieter end to the year due to planned maintenance at Voisey Bay, Ecora maintained its quarterly performance with $9.9 million from base metals. The company also benefited from increased copper contributions from its Mimbula and Mantos Blancos operations.

Ecora continues to make progress on its strategic shift toward critical minerals, with its remaining coal royalty with Kestrel set to end this year. The company’s deleveraging efforts have been successful, with net debt reduced to $85.5 million at the end of Q4, down from $103.6 million at the end of Q3 and below expectations of $92 million.

The company’s guidance for 2026 aligns with market expectations. A potential key catalyst for Ecora could be the sale or restart of the West Musgrave project.

Unconfirmed media reports from late last year suggested significant interest from multiple parties in BHP’s nickel business, which is currently under review.

At current spot prices, the West Musgrave asset would be 54% nickel and 46% copper, with an estimated value of $1.9 billion assuming an immediate restart in investment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- British Land (LON:BLND) said on Wednesday it has made an offer to acquire Life Science REIT (LABS) for £150 million, representing a 21% premium to LABS’ share price of 35.4 pence.

The proposed deal values LABS at 42.8 pence per share, consisting of 14.1 pence in cash and 0.07 new British Land shares.

This offer price represents a 15% premium to LABS’ three-month volume-weighted average price of 37.3 pence and a 26% discount to its EPRA Net Tangible Assets of 57.7 pence as of December 31.

The LABS board has recommended the offer, with irrevocable acceptances already secured from 31.1% of shareholders. Following the acquisition, LABS shareholders will own 2.4% of the enlarged group and are expected to qualify for British Land’s final FY26 dividend.

The LABS portfolio is valued at £332.6 million with a rent roll of £26.5 million. The portfolio is concentrated in five assets, including a £27 million development in the Oxford Technology Park that is facing delays due to expensive redesign work.

The property is being converted from large units into small units, which are not leasing well.

Another property in Cambourne is being written down to a secondary business park. Both properties are located approximately 10 miles from the central areas of Oxford and Cambridge respectively.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Morgan Stanley outlined two stocks as its top picks in the European chemicals sector, highlighting their defensive qualities and growth potential despite an otherwise challenging outlook for the industry.

The investment bank’s analysis points to these companies’ ability to maintain earnings resilience amid subdued demand conditions that have affected the broader chemicals industry. Both stocks offer investors exposure to specialty segments with stronger barriers to entry and more stable end markets compared to cyclical industrial chemicals.

International Flavors & Fragrances (

Morgan Stanley chose IFF as a top pick, lauding its exposure to consumer ingredients rather than more cyclical industrial chemicals. The bank expects IFF’s earnings to remain resilient despite the current subdued demand environment, supported by pricing discipline, portfolio optimization efforts, and high exposure to recurring end-markets including food, beverage, and personal care products.

Analysts see limited downside risk to consensus forecasts for IFF, noting that volumes are holding up better than in industrial chemicals while margins benefit from ongoing cost management initiatives. Morgan Stanley also pointed to IFF’s attractive valuation following a sector-wide de-rating, suggesting the company offers an appealing combination of defensive characteristics and operational leverage when demand conditions eventually improve.

In a recent development, International Flavors & Fragrances reported third-quarter 2025 results that surpassed analyst expectations, with revenue of $2.69 billion and earnings per share of $1.05.

Syensqo

Morgan Stanley’s second top pick, Syensqo, earned its recommendation based on the company’s focus on higher-quality specialty polymers and materials with strong barriers to entry. The bank identifies return on invested capital as a key driver of valuation and believes Syensqo is well-positioned versus peers on this important metric.

Despite weak industrial demand, Morgan Stanley expects Syensqo to deliver relatively stable earnings, supported by exposure to structurally growing applications and limited competitive pressure from Chinese manufacturers in advanced specialties. The bank also notes that supply growth in key chains is set to abate, which should support margins. Syensqo’s portfolio mix is seen as offering leverage to a recovery without excessive cyclicality.

Syensqo announced its third-quarter 2025 results, posting net sales of €1.52 billion, which represented a slight year-on-year decrease, while achieving an EBITDA margin above 23%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.