Stocks Pare Gains as Earnings Give a Mixed Picture: Markets Wrap

(Bloomberg) — European stocks trimmed gains driven by optimism that US-Russia talks could end the Ukraine war as traders worked through a deluge of earnings.

Nestle SA and Siemens AG rallied after their updates, but weakness in Unilever Plc and Barclays Plc tempered the overall gains in Europe’s Stoxx 600 index. Oil fell further on speculation that risks to Russian supply may ease, dragging on energy stocks. Ukraine dollar bonds rose the most among emerging-market peers.

The euro gained and the dollar weakened, reflecting an increased appetite for risk in markets as traders focused on President Donald Trump’s Ukraine peace talks with Russia. That offset the blow to hopes for US interest-rate cuts after data Wednesday showed faster-than-expected inflation.

“An end to the conflict could eliminate war-related costs, particularly in energy, reduce uncertainty, and potentially boost business confidence and investment—crucial for Europe’s largest economies,” said Susana Cruz, a strategist at Panmure Liberum. “While sectors like defense might face a temporary selloff, this is likely to correct over time, as recent conflicts have underscored the need for increased defense spending.”

The pound rose after Britain registered unexpected economic growth at the end of 2024. Gross domestic product rose 0.1% in the fourth quarter, an acceleration from the flat performance in the third quarter. It was better than the 0.1% fall expected by economists and the Bank of England.

Asian stocks were higher for a second day, while US equity futures contracts fluctuated. Yields on 10-year Treasuries edged lower after jumping on Wednesday amid receding hopes for Federal Reserve rate cuts. 

Trump agreed in a phone call with Russian President Vladimir Putin to start negotiating an end to the war in Ukraine.

“No concrete announcements, but the market reacted to the fact that discussions are starting,” said Georgios Leontaris, HSBC Private Bank’s chief investment officer for EMEA. “There is still a long way, there is a lot to talk about. But the fact that the discussions are starting was reflected in the pricing of European assets.”

Corporate Highlights:

• Barclays stock traders turned in a better-than-expected performance in the fourth quarter as US President Donald Trump’s election spurred volatility across asset classes.
• Unilever will list its ice cream unit in Amsterdam, London and New York, as the consumer goods company said it expects a modest improvement in profitability this year and began a share buyback.
• Siemens shares jumped as robust demand for the company’s electrification products boosted revenues and a long-standing slump in factory-automation sales showed signs of abating.
• Commerzbank AG announced a plan to substantially lift profitability over the coming years as Chief Executive Officer Bettina Orlopp seeks to bolster the lender’s defense against a potential takeover by rival UniCredit SpA.
• Nestle is seeking to lift sales growth from historically low levels by increasing prices for products such as coffee amid escalating commodity costs, while at the same time reining in expenses.
• Nissan Motor Co. is bracing for sizable losses this fiscal year as it seeks to rebuild its struggling business without the help of Honda Motor Co., now that the two automakers have formally ended negotiations to combine.
• British American Tobacco Plc shares fall as much as 8.5%, the most in more than a year, after the company’s FY25 guidance for revenue growth came in below consensus estimates. Analysts say the disappointing outlook is due to excise changes in Bangladesh as well as regulatory changes in Australia, although they note that 2024 results were in line with expectations.

Key events this week:

• Eurozone industrial production, Thursday
• US initial jobless claims, PPI, Thursday
• Eurozone GDP, Friday
• US retail sales, industrial production, business inventories, Friday
• Fed’s Lorie Logan speaks, Friday

Some of the main moves in markets:

Stocks

• The Stoxx Europe 600 rose 0.3% as of 9:24 a.m. London time
• S&P 500 futures were little changed
• Nasdaq 100 futures were little changed
• Futures on the Dow Jones Industrial Average were little changed
• The MSCI Asia Pacific Index rose 0.6%
• The MSCI Emerging Markets Index rose 0.1%

Currencies

• The Bloomberg Dollar Spot Index fell 0.2%
• The euro rose 0.3% to $1.0417
• The Japanese yen rose 0.3% to 153.93 per dollar
• The offshore yuan rose 0.2% to 7.2954 per dollar
• The British pound rose 0.3% to $1.2484

Cryptocurrencies

• Bitcoin fell 1.5% to $96,172.07
• Ether fell 0.2% to $2,676.34

Bonds

• The yield on 10-year Treasuries declined two basis points to 4.60%
• Germany’s 10-year yield declined one basis point to 2.47%
• Britain’s 10-year yield was little changed at 4.54%

Commodities

• Brent crude fell 0.6% to $74.75 a barrel
• Spot gold rose 0.3% to $2,913.56 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Winnie Hsu and Margaryta Kirakosian.

©2025 Bloomberg L.P.