Investing.com - European stock markets steadied Wednesday, with investors digesting a series of major corporate results ahead of the conclusion of the latest Federal Reserve policy-setting meeting.
At 03:05 ET (08:05 GMT), the DAX index in Germany gained 0.4%, while the CAC 40 in France slipped 0.4% and the FTSE 100 in the UK fell 0.2%.
German consumer confidence slips
European equities traded in a relatively stable manner Wednesday, steadying after the week’s volatile trade, ahead of Thursday’s key meeting by the European Central Bank.
The ECB concludes its latest policy-setting gathering on Thursday, and is expected to slash rates by a quarter of a percentage point, adding to last year’s four cuts to address the overall weak growth.
Data released earlier Wednesday indicated that German consumer sentiment is set to dip heading into February due to growing pessimism among households about the economy.
The consumer sentiment index, published by GfK and the Nuremberg Institute for Market Decisions, unexpectedly fell to -22.4 points from a slightly revised -21.4 points the month before.
The Federal Reserve concludes its two-day policy meeting later Wednesday, with the US central bank expected to keep interest rates unchanged as inflation remains above the bank’s 2% medium-term target.
This meeting comes on the heels of President Donald Trump's virtual address to the World Economic Forum in Davos earlier this month where he advocated for immediate rate cuts.
ASML impresses with Q4 result
Investors have been buoyed Wednesday by strong results from Dutch semiconductor giant ASML (AS:ASML), helping sentiment following the global tech sell-off earlier in the week after the successful rollout of Chinese startup DeepSeek’s R1 reasoning model.
ASML stock soared 10% after the biggest supplier of computer chip-making equipment posted much better than expected demand for its most advanced tools in the fourth quarter, even as DeepSeek’s low-cost model raises concerns over AI spending.
Elsewhere, LVMH (EPA:LVMH) stock fell 4% as sales growth posted by the luxury goods group failed to impress, following a string of strong results from rivals and recent price gains.
Remy Cointreau (EPA:RCOP) stock fell 3% after the French spirits maker said it now expected the decline in full year 2024/25 group sales to be close to 18%, at the lower end of its guidance target, citing lack of visibility on the timing of a recovery in demand in the United States and worsening market conditions in China.
Akzo Nobel (AS:AKZO) stock fell 3% after the Dulux paints maker disappointed with its forecast for core earnings growth for 2025, not expecting a significant market rebound during the year.
AB Volvo (OTC:VLVLY) stock rose 2% after the Swedish truckmaker reported a larger drop than expected in fourth-quarter operating profit, but raised its dividend payout.
Crude slips on increased US stockpiles
Oil prices steadied Wednesday after an increase in US crude stockpiles weighed on prices, adding to global growth concerns if US tariffs go ahead.
By 03:05 ET, the US crude futures (WTI) gained 0.1% to $73.84 a barrel, while the Brent contract fell 0.1% to $76.47 a barrel.
US crude oil inventories grew by 2.86 million barrels last week, according to data from the industry body American Petroleum Institute, after nine straight weeks of draws, as cold weather pushed up demand for heating, while travel demand also increased during the year-end holidays.
The Energy Information Administration, the statistical arm of the US Department of Energy, is due to release its weekly report later in the session.
Oil benchmarks fell to multi-week lows early this week, weighed by concerns of increased US production, the Trump administration’s plans to impose trade tariffs on major economies, as well as weak economic data from China.
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