Investing.com – European stock markets traded in a mixed manner Thursday, helped by the announcement of more Chinese economic largesse ahead of an eagerly-awaited speech by President Donald Trump at the World Economic Forum later in the session.
At 06:40 ET (11:40 GMT), the DAX index in Germany climbed 0.3% and the CAC 40 in France rose 0.4%, while the FTSE 100 in the UK fell 0.1%.
Trump to speak at Davos
Sentiment received a boost Thursday by Beijing stating that it will guide big state insurers and commercial insurance funds to increase investments in local stocks.
While this move would have little impact on European stock markets, it also indicates that Chinese authorities are wary of the financial difficulties the country is suffering, and could precede more stimulus measures this year to offset the impact of US trade tariffs.
However, investors are wary ahead of President Donald Trump’s keynote address at the World Economic Forum in Davos, Switzerland, later in the session.
The newly inaugurated president has repeated his threat to introduce universal tariffs on goods imported to the United States, and his speech will be studied carefully for any more comments on this topic as well as for his position on major geopolitical and economic issues such as the Ukraine-Russia war, the future of Israeli-Palestine relations and economic rivalry with China.
European shares have been boosted this week, with the German DAX climbing to an all-time high, by the announcement by new President Trump of mammoth spending plans for artificial intelligence infrastructure as he returns to the White House after a gap of four years.
Norges Bank keeps rates steady
The Norges Bank held rates steady earlier Thursday, as widely expected, but officials signalled a potential cut in March.
The Federal Reserve and the European Central Bank hold rate-setting meetings next week, and the Bank of England in early February.
A sharp downturn in British factories eased only slightly in January and optimism among manufacturers sagged to its lowest level in over two years, an industry survey showed on Thursday.
The Confederation of British Industry’s monthly order book gauge improved in January to -34 from -40 in December, which had been a more than four-year low.
Puma (OTC:PMMAF) slumps on weak 2024 profit
In corporate news, Puma (ETR:PUMG) stock slumped over 19%, with the German sportswear company announcing a cost-cutting program after reporting 2024 net profit below the prior year’s level, missing its expectations.
AB Foods (LON:ABF) stock fell 2.8% after the company cut its 2025 sales growth forecast for its Primark clothing group, after a difficult end to last year, citing cautious consumer sentiment and the mild autumn weather.
Primark generates about 45% of its sales in the UK and Ireland.
Essity (ST:ESSITYb) stock fell 6.5% after the Swedish hygiene products maker reported fourth-quarter core earnings below market expectations, as high raw material costs in its consumer tissue business hurt margins.
Crude continues to drift lower
Oil prices edged higher Thursday, bouncing after a recent downturn as traders braced for higher US production under President Donald Trump.
By 06:40 ET, the US crude futures (WTI) climbed 0.4% to $75.76 a barrel, while the Brent contract rose 0.4% to $79.33 a barrel.
Crude prices have tumbled from near six-month highs in the past week, as uncertainty over Trump’s energy and trade policies weighed. The signing of a ceasefire between Israel and Hamas also sapped some risk premium from crude.
Additionally, data from the American Petroleum Institute, released on Wednesday, showed that US inventories grew 1 million barrels in the week to Jan, 17, after five straight weeks of draws.
The official inventory numbers, from the Energy Information Administration, are due later in the session.
