European markets opened with a sense of caution on Thursday, as investors braced for a packed day of major corporate earnings, critical economic data, and a monetary policy decision from the European Central Bank.
Futures data from IG pointed to a mixed and hesitant start to the session, with the UK’s FTSE projected to open 0.2% lower, while Germany’s DAX was seen 0.18% higher.
France’s CAC 40 and Italy’s FTSE MIB were both pointing to a flat open.
The primary focus in the early session is a deluge of third-quarter earnings from some of the continent’s biggest companies.
Energy giant Shell reported a significant drop in profit but still beat analyst expectations, posting adjusted earnings of $5.4 billion.
The company also announced another $3.5 billion in share buybacks over the next three months, maintaining its commitment to shareholder returns.
Meanwhile, aerospace and defense giant Airbus posted a strong third quarter late on Wednesday, with its results coming in above analyst estimates.
Driven by a surge in commercial aircraft deliveries, revenue jumped 14% to 17.8 billion euros ($23.5 billion), and operating profit soared 42% to 1.75 billion euros.
The earnings wave continues throughout the day with reports from Volkswagen, ING, BBVA, and Société Générale, among others.
Data deluge and a ‘non-event’ ECB meeting
Adding to the busy agenda are key economic indicators, including flash third-quarter GDP figures for the euro zone, unemployment data, and fresh inflation numbers from Spain and Germany, all of which will provide a clearer picture of the region’s economic health.
Later in the day, the European Central Bank is set to announce its latest monetary policy decision.
However, economists have largely branded it a “non event,” as the central bank is widely expected to keep its key deposit facility rate steady at 2%.
Global factors: digesting the Trump-Xi deal
Beyond Europe, investors were also assessing the outcome of the high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping.
The summit concluded with a significant de-escalation in trade tensions.
Trump said he had reached a one-year agreement with Xi on rare earths and other critical minerals, and that Washington will cut fentanyl-related tariffs on Beijing to 10% after their meeting in South Korea.
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