European Stock Markets Drift Amid Earnings Season

European stock markets drifted Wednesday, with investors focusing on a deluge of third-quarter corporate earnings amid uncertainty over regional growth.

At 03:05 ET (07:05 GMT):
– DAX index in Germany traded 0.1% lower
– CAC 40 in France fell 0.1%
– FTSE 100 in the U.K. climbed 0.1%

Deutsche Bank Returns to Profit

The corporate sector was in the spotlight in Europe Wednesday, as the third-quarter earnings season kicked into top gear.

Key Corporate Earnings:

• Deutsche Bank (ETR:DBKGn) stock fell over 3% after warning of substantial credit losses in 2024, despite returning to profit and announcing share repurchases.
• Lloyds Banking Group (LON:LLOY) rose 1.8% after reporting profits that exceeded expectations due to increased financial confidence.
• Heineken (AS:HEIN) gained 1.7% with a bigger than expected rise in organic net revenue.
• WPP (LON:WPP) climbed 2.4% after reporting better-than-expected organic revenue growth, driven by North America and Europe, countered by tough trading in China.
• Iberdrola (OTC:IBDRY) stock rose 1.5% after a 50% increase in net profit for nine months.
• L’Oreal (EPA:OREP) fell 2.8% due to disappointing sales growth linked to weak demand in China.

Later Wednesday, significant earnings are expected from Wall Street figures like AT&T, Coca-Cola, Boeing, Tesla, and IBM.

German Growth Concerns Remain

Concern about lackluster regional growth weakens sentiment in Europe. The International Monetary Fund downgraded its growth forecast for Germany to stagnation this year and predicted only 0.8% growth for 2025.

Crude Slips on US Inventories Rise

Oil prices dipped Wednesday due to an increase in US crude inventories, though continued Middle East tensions limited losses. By 03:05 ET:
– Brent dropped 0.6% to $75.56 per barrel
– U.S. crude (WTI) traded 0.6% lower at $71.28 per barrel

The American Petroleum Institute reported a growth of 1.643 million barrels in US oil inventories, stirring demand concerns. Traders connected a risk premium to crude prices amid escalating tensions between Israel, Hamas, and Hezbollah.