European markets stayed weak on Wednesday. Investors remained cautious. Global tensions and earnings kept traders busy.
European stocks fall 0.8 percent as oil prices rise on Iran crisis
The pan European Stoxx 600 dropped 0.3%. Germany’s DAX stayed mostly flat. France’s CAC 40 slipped 0.1%. The UK FTSE 100 saw a bigger fall of 0.8%.
The main concern is rising oil prices. The Iran conflict is pushing prices higher. This is worrying investors.
The Strait of Hormuz is under pressure. This route carries nearly 20% of global oil supply. Tanker movement is almost blocked.
This situation is keeping crude prices above normal levels. Higher oil prices can increase inflation. It can also reduce company profits.
Talks between the US and Iran have stalled. Reports suggest preparation for a longer conflict. This is adding uncertainty to global markets.
UBS profit jumps 80 percent while Adidas shares surge 7 percent
UBS reported a strong quarter. Profit jumped 80%. Trading activity increased due to market volatility.
Adidas shares rose more than 7%. The company posted better than expected profit. This came despite heavy discounting in retail.
STMicroelectronics also gained. It hit its highest level since 2024. Results came in above expectations.
Airbus shares moved up. The company confirmed its yearly delivery target. This is despite engine supply issues.
Mercedes Benz saw its revenue fall. Competition from China remains strong. Still the stock edged slightly higher.
Banco Santander reported a 12.5% rise in profit. The stock stayed mostly flat.
Deutsche Bank falls despite record profit as GSK drops 3 percent
Deutsche Bank posted its biggest ever quarterly profit of 1.912 billion euros. Still the stock declined. Investors remained cautious.
GSK shares dropped more than 3%. This came even after strong future guidance.
Aena also traded lower after releasing its results.
Markets are now waiting for the US Federal Reserve decision. Interest rates are expected to stay unchanged.
The focus will be on future guidance. Investors want clarity on rate cuts ahead.
Overall mood remains cautious. Rising oil prices and global tensions are keeping markets under pressure.