European Markets Struggle for Direction as Earnings Season and Rate Decisions Take Center Stage

European stock markets opened cautiously on Thursday, with investors treading carefully amid a wave of corporate earnings and upcoming central bank decisions. The region’s main indexes — the U.K.’s FTSE, France’s CAC 40, Germany’s DAX, and Italy’s FTSE MIB — hovered around the flatline, reflecting uncertainty across markets.

A busy day of third-quarter earnings kept traders on alert, with pharmaceutical giant AstraZeneca reporting stronger-than-expected revenues and profit while maintaining its full-year guidance. German logistics firm DHL also beat market expectations, though CEO Tobias Meyer warned of a “significant decline” in U.S. trading volumes, hinting at continued volatility in global trade.

In the banking sector, Commerzbank surprised investors with a 7.9% year-on-year drop in third-quarter net profit, totaling €591 million. CEO Bettina Orlopp attributed the decline to a tax effect and restructuring costs earlier in the year but remained optimistic, raising the bank’s full-year net interest income forecast from €8 billion to €8.2 billion.

Meanwhile, attention turned to central bank updates, with both the Bank of England and Norway’s central bank expected to announce their latest interest rate decisions. Analysts widely anticipate the Bank of England will hold rates at 4% as policymakers await the U.K. government’s Autumn Budget set for November 26.

Globally, sentiment remained mixed. Asia-Pacific markets gained overnight, tracking Wall Street’s rise following upbeat results from chipmaker AMD, which boosted AI-linked stocks. However, U.S. futures dipped slightly as investors processed the Supreme Court’s hearing on former President Donald Trump’s tariffs. Legal skepticism from the justices fueled expectations that the trade measures may be rolled back — a move that could lift market confidence in the coming weeks.

source: cnbc