European Stocks Mixed as Schneider Electric’s Strong Profit Boosts Market Sentiment

European stock markets were mixed on Thursday morning, following a flurry of earnings releases across the continent. The Stoxx 600 index opened slightly higher but later slipped below the flatline, with France’s CAC 40 gaining 0.4% while the U.K.’s FTSE 100 saw a decline of 0.35%. Among the major corporate reports, Schneider Electric stood out, with its shares surging over 6% after reporting record-breaking annual sales and profits, surpassing analysts’ expectations.

In addition to Schneider Electric’s performance, investors also focused on the earnings results of other major companies, including Accor, Renault, Mercedes-Benz, Leonardo, and Airbus. These reports provided mixed results, reflecting a diverse range of challenges and opportunities faced by large firms across various sectors. However, the global market mood was also shaped by political and economic developments, notably U.S. President Donald Trump’s proposed tariffs on imports and expectations that the Federal Reserve might maintain higher interest rates for an extended period.

Meanwhile, French automaker Renault reported its highest-ever operating profit, driven by new product launches and cost-cutting measures. However, its net income saw a significant drop due to a major capital loss from the disposal of its Nissan shares. The company’s stock has increased nearly 40% over the past year, though it is adjusting its forecast for operating margins in the coming year, which will be impacted by new EU CO2 emissions regulations.

Airbus also made headlines with a dip in annual profits despite an increase in revenue. The company faced challenges in ramping up production due to ongoing supply chain issues but set an ambitious delivery target for 2025. Analysts noted that while some of Airbus’s targets were below expectations, the overall outlook remained optimistic, especially regarding its commercial aircraft programs. This was amid growing concerns about the defense sector, where profits had significantly fallen.

SOURCE: cnbc