European stock markets started Thursday’s session on a positive note, with the regional Stoxx 600 index edging higher as investors navigated a packed day of corporate earnings reports and awaited a key interest rate decision from the Bank of England.
Travel and leisure stocks were among the top performers in early trade.
About 20 minutes after the opening bell, the pan-European Stoxx 600 was last seen trading approximately 0.2% higher. The regional Stoxx Travel & Leisure index was a clear outperformer, leading the gains with a rise of 1.6%.
Performance across the major national bourses was somewhat mixed but generally positive. France’s CAC 40 index was up 0.3%, leading the gains among the major exchanges.
Germany’s DAX was also in positive territory. However, London’s FTSE 100 was down a slight 0.3%, indicating some localized caution.
Thursday is another busy day on the earnings front, with a host of heavyweight regional companies due to report, including Siemens, Deutsche Telekom, Allianz, Zurich Insurance, Merck, Swisscom, Henkel, and Rheinmetall. On the data front, investors will be parsing French and German trade balance figures.
Maersk’s strong performance and a recovery in olive oil
One of the key corporate reports this morning came from Danish shipping giant Maersk.
The company, which is widely considered a barometer of global trade, posted a stronger-than-expected second-quarter operating profit.
Maersk reported preliminary underlying earnings before interest, tax, depreciation, and amortization (EBITDA) of $2.3 billion for the June quarter.
This represents a 7% increase from the $2.14 billion recorded over the same period a year ago and comfortably surpassed the $1.97 billion that analysts had expected in an LSEG poll.
The company cited a continued focus on operational improvements as a key reason for its strong performance, despite what it described as unprecedented geopolitical volatility.
In other positive corporate news, the chief executive of Spain’s Deoleo, the world’s largest olive oil producer, stated that a bumper harvest and improving market sentiment are clear signs that the industry is recovering from one of its toughest moments ever.
A substantial olive harvest, particularly in Spain, has helped to restore confidence in the sector and has led to a pronounced fall in the prices of both extra virgin and virgin olive oils in supermarkets.
This comes after two consecutive seasons of poor yields had resulted in a period of extraordinary turbulence throughout the olive oil value chain.
Bank of England decision looms amid tariff uncertainty
The main event for UK investors today will be the Bank of England’s latest monetary policy decision.
The central bank is widely expected to cut its key interest rate from 4.25% to 4%, a move that will be closely watched for its potential to stimulate the UK economy.
This comes against a backdrop of continued global trade uncertainty. Global markets are still keeping a close eye on the tariff landscape, particularly after US President Donald Trump on Wednesday implemented an additional 25% tariff on India, just days after he had already imposed a 25% levy on the country.
President Trump, in an executive order, stated, “I find that the Government of India is currently directly or indirectly importing Russian Federation oil.”
India responded by saying it is “extremely unfortunate that the US should choose to impose additional tariffs … for actions that several other countries are also taking in their own national interest.”
The Indian government added that its imports are based on “market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India.”
President Trump also signaled on Tuesday that he will announce new tariffs on semiconductors and chips as soon as next week.
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