European Stocks Fail To Hold Early Gains, Close On Mixed Note

European stocks closed on a somewhat mixed note on Thursday with investors mostly reacting to corporate earnings updates, and assessing trade news and geopolitical developments, in addition to digesting the Federal Reserve’s monetary policy announcement.

The pan European Stoxx 600 ended down by 0.23%. The U.K.’s FTSE 100 and France’s CAC 40 closed up by 0.17% and 0.06%, respectively, while Germany’s DAX tumbled 2.07%. Switzerland’s SMI climbed up 0.95%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Ireland, Poland, Portugal and Spain ended weak.

Iceland, Norway, Russia, Sweden and Turkiye closed higher, while Netherlands ended flat.

In the UK market, 3i Group soared nearly 9% after the company reported that its non-food discounter, Action has registered an increase in operating EBITDA and sales for the 12-month period on strong demand.

For the 12-month period to December 28, 2025, the Group’s Action posted an operating EBITDA of EUR 2.367 billion, higher than EUR 2.076 billion in the previous year.

Sales stood at EUR 16 billion, higher than EUR 13.781 billion last year. LFL sales growth was 4.9%, compared with 10.3% a year ago. Net asset value per share moved up to 3,017 pence as of December 31, 2025, from 2,857 pence per share, recorded on September 30, 2025.

Metlen Energy & Metals, Shell, Antofagasta, GSK, Admiral Group, Rio Tinto, BP, IMI, Unilever and Diageo gained 1 to 2.7%.

Ashtead Group closed down by 7.6%. Fresnillo lost 5.2%, while The Sage Group, AutoTrader Group, Relx, Entain, Airtel Africa, Next, RightMove, ICG, Polar Capital Technology Trust and Babcock International ended down by 2 to 4%.

The German market fell sharply as SAP tanked 16% after its fourth-quarter earnings missed estimates. SAP reported that its fourth quarter profit after tax was 1.9 billion euros, up 17% from a year ago.

For 2026, SAP expects cloud revenue at constant currencies of 25.8 – 26.2 billion euros, up 23% to 25% at constant currencies; cloud and software revenue at constant currencies of 36.3 – 36.8 billion euros, up 12% to 13% at constant currencies.

Deutsche Bank lost about 1.7% despite posting its largest annual profit since 2007. The lender’s earnings totaled EUR1.503 billion, or EUR0.76 per share in the fiscal year 2025, compared with EUR304 million, or EUR0.15 per share, a year earlier.

Infineon tumbled 3.6%, weighed down by Microsoft’s weak outlook. Daimler Truck Holding, Rheinmetall, Bayer, Scout24, Symrise, Fresenius, Commerzbank, Heidelberg Materials and Brenntag also ended notably lower.

Siemens, Gea Group, Henkel, Vonovia, Zalando, Beiersdorf and Deutsche Post closed with strong gains.

In the French market, Eurofins Scientific lost about 6.5%. STMicroElectronics also lost 6.5%. Dassault Systemes drifted down 4.1%.

Capgemini, Publicis Groupe, ArcelorMittal, Thales, Saint-Gobain and Kering also ended notably lower.

Schneider Electric, Legrand, L’Oreal and TotalEnergies gained 1.6 to 2.5%. Air Liquide and Michelin also closed with notable gains.

In economic news, a report from the European Commission said the Eurozone Economic Sentiment Indicator (ESI) climbed to 99.4 in January 2026, up 2.2 points from a revised 97.2 in December 2025, marking its highest level since January 2023. Consumer confidence also strengthened, reaching -12.4, its highest since February 2025.

Data from the European Central Bank showed that lending to Eurozone businesses increased 3% year-on-year to a record €5.324 trillion in December 2025, underscoring a continued recovery in credit demand, supported by the European Central Bank’s recent policy easing.

Data from the Society of Motor Manufacturers and Traders Limited (SMMT) showed UK car production rose 17.7% year-on-year to 53,003 units in December 2025, ending a four-month decline.

However, total vehicle production fell 15.5% in 2025 to 764,715 units, weighed down by the cyber disruption, new trade tariffs, plant consolidation in the commercial vehicle segment, and ongoing restructuring as the industry shifts.