European Markets Climb on Earnings Optimism, Tariff Concerns Loom.
Strong corporate reports from Siemens Energy and Zalando bolster stocks, while the prospect of new U.S. tariffs on semiconductors casts a shadow on future growth.
European stock markets continued their upward trend for a third consecutive day on Wednesday. The STOXX 50 index saw a gain of 0.4%, while the broader STOXX 600 ticked up by 0.2%, largely driven by a slew of positive corporate earnings reports. However, investor sentiment remains cautious amidst new trade policy developments from the United States.
A number of European companies saw their shares rise following strong financial disclosures. German energy giant Siemens Energy advanced 1.8% after announcing a record quarterly order intake. The company reported a significant turnaround to a net profit of €697 million in its fiscal third quarter, a stark contrast to the €102 million loss in the same period last year, driven by record orders and double-digit revenue growth.
German healthcare company Fresenius also saw a modest increase of 0.2% after it upgraded its revenue outlook for the full year. The company now anticipates organic revenue growth of 5% to 7%, an increase from the previous forecast of 4% to 6%.
Online fashion retailer Zalando jumped 1.7% upon raising its full-year guidance.This adjustment comes after the successful acquisition of About You, with the combined group now expecting gross merchandise volume and revenue to grow between 4% and 7% on a pro-forma basis. Italian bank Banco BPM was another gainer, rising 1.4% after its net profit exceeded expectations.The bank reported a significant 85% year-over-year increase in its second-quarter net profit to €703.8 million.
However, the news was not universally positive. Shares of Danish pharmaceutical company Novo Nordisk remained relatively flat. While the company reported a 25% increase in operating profit for the first half of 2025, the figure fell short of forecasts, and the company lowered its full-year sales and operating profit growth outlook.
In the materials sector, Glencore saw its shares fall by 3.7% after reporting a 14% decrease in its first-half adjusted core profit, which was attributed to weaker coal prices and lower copper production. Similarly, Commerzbank shares dipped by 1% following a 14.1% drop in its second-quarter net profit.Despite the profit decline, the German bank did raise its full-year outlook, now expecting a net result of around €2.5 billion.
Adding to market uncertainty, investors are keeping a close watch on international trade policies. U.S. President Donald Trump has indicated that new tariffs on imported semiconductors and chips could be announced as early as next week. This move is part of a broader “America first” push to encourage domestic manufacturing. The potential tariffs could have a significant impact on global supply chains and increase costs for tech companies that rely on foreign-made chips.
