European Stocks Rise as Earnings Boost Investor Confidence; Kering Surges 8% on Strong Results

European markets opened higher on Thursday, lifted by a wave of major corporate earnings that painted a mixed but resilient picture of the continent’s business climate. The pan-European Stoxx 600 climbed 0.3% shortly after the opening bell, with all major regional indexes—including the U.K.’s FTSE 100, France’s CAC 40, and Germany’s DAX—trading in positive territory. Investors are closely watching earnings for signs of confidence amid a backdrop of geopolitical tension and inflation uncertainty.

French luxury conglomerate Kering, the parent company of Gucci, saw its shares soar more than 8% after reporting third-quarter revenue of €3.4 billion, exceeding analyst expectations despite a 5% year-on-year dip. Gucci’s sales declined 14% to €1.3 billion, but investors welcomed the company’s stronger-than-forecast performance, viewing it as a sign of stabilization in the luxury sector after months of sluggish growth in China and Europe.

In the tech space, SAP reported a 7% revenue rise to €9.08 billion, narrowly missing expectations but showing strong momentum in its cloud business, which grew 22% year-on-year. CEO Christian Klein credited the performance to expanding market share in AI and data-driven services, adding that SAP remains confident about achieving its revenue growth targets for 2026. The upbeat sentiment pushed SAP shares up by 2% in early trading.

Meanwhile, Lloyds Banking Group reported a £1.2 billion pre-tax profit, beating consensus estimates but down from £1.8 billion a year earlier. The results come amid an £800 million charge tied to the U.K. car finance mis-selling scandal, which continues to weigh on British lenders. Lloyds’ shares slipped 0.5% despite the better-than-expected profit, as investors remained cautious about potential regulatory fallout.

Beyond corporate news, energy markets were also in focus after oil prices jumped nearly 3% overnight. The spike followed new sanctions from both the Trump administration and the European Union targeting Russia’s oil industry, specifically companies Rosneft and Lukoil. EU foreign policy chief Kaja Kallas emphasized that the bloc is determined to cut financial ties with Moscow to curb funding for the ongoing war in Ukraine. European leaders are expected to discuss additional measures, including using frozen Russian assets to support Ukraine, at a summit in Brussels later today.

 source: cnbc