European Stocks Open Lower as Markets React to Oil Shock; Nokia and L’Oréal Rally on Strong Earnings

European stock markets started Thursday on a weaker note as investors reacted cautiously to rising geopolitical tensions and higher oil prices. Major indexes such as the UK’s FTSE 100, Germany’s DAX, and Italy’s FTSE MIB all dipped in early trading, while France’s CAC 40 managed a modest gain, showing mixed sentiment across the region.

Market pressure was partly driven by rising crude oil prices, with Brent crude climbing nearly 1.5% to $103.34 per barrel. The increase followed reports that the United States had intercepted Iranian oil tankers in Asian waters, adding fresh concerns that tensions in the Middle East could escalate and further disrupt global energy supply chains.

Despite the overall downturn, some major European companies delivered strong earnings that boosted their stock performance. Nokia surged about 7% after reporting solid first-quarter results, including stronger-than-expected profit growth and rising net sales. L’Oréal also jumped more than 8%, marking its strongest quarterly growth in two years and lifting investor confidence in the luxury and consumer goods sector.

However, not all corporate results were positive. Defense company Saab slipped after reporting fewer large orders in the first quarter, even though it still posted solid sales growth and stronger profits. The mixed performance highlights how company-specific results are helping to shape individual stock movements even in a cautious market environment.

Overall sentiment in Europe remains fragile, especially after Germany downgraded its economic growth forecast for 2026, citing global uncertainty and rising costs. While Asian markets earlier touched record highs, they later reversed gains, and U.S. futures stayed largely flat—signaling a global market mood still dominated by caution and uncertainty.

source: cnbc