European markets experienced a positive trend on Wednesday, primarily driven by strong earnings reports that spurred gains across multiple sectors. The pan-European Stoxx 600 index closed 0.47% higher, despite a mixed performance among various sectors and stock exchanges.
The UK’s FTSE 100 saw an increase of 0.61%, while Germany’s DAX rose by 0.22%. In contrast, France’s CAC 40 slipped by 0.19%, and Italy’s MIB fell by 0.38%.
In the financial sector, Spanish bank Santander reported a remarkable 14% year-on-year profit growth, reaching 12.6 billion euros ($13.1 billion) for the year 2024. The bank attributed its success to the addition of 8 million new customers and robust revenue growth across its global operations. Santander also announced a share buyback program worth 10 billion euros, funded by expected excess capital from its 2025 and 2026 earnings. Following this announcement, Santander’s shares surged 7.6% in early trading.
Conversely, French oil giant TotalEnergies reported a substantial 21% drop in annual profit, attributed to lower crude prices and weak fuel demand. The company’s adjusted net income for 2024 was $18.3 billion, down from $23.2 billion the previous year, although it exceeded analysts’ expectations. As a result, TotalEnergies’ shares rose by 1.4%.
Danish pharmaceutical company Novo Nordisk saw its shares jump 4.6% after reporting a better-than-expected fourth-quarter profit, driven by high demand for its obesity drug Wegovy. The company’s net profit increased by 29%, reaching 28.23 billion Danish kroner ($3.98 billion), surpassing expectations.
British pharmaceutical firm GSK also made headlines, raising its long-term sales guidance and announcing a rise in core operating profit. GSK’s core profit grew 11% year-on-year, and the company projected sales growth of up to 5% in 2025. Following this news, GSK’s shares climbed 6.4% shortly after the market opened.
Meanwhile, gold futures reached a new record due to heightened demand for safe-haven assets, influenced by geopolitical tensions and economic uncertainty. Analysts noted that a weaker dollar contributed to this surge.
As the European markets opened, forecasts indicated a potential dip, with the FTSE 100 expected to open 18 points lower. Earnings reports from various companies, including Handelsbanken, Akzo Nobel, and Credit Agricole, were anticipated, alongside the release of the latest purchasing managers’ index data from the eurozone.
