European stock markets saw positive momentum Thursday, with investors closely monitoring earnings reports and anticipating the Bank of England’s monetary policy decision.
By 9:37 a.m. London time, the Stoxx 600 index was up 0.75%, with almost all sectors showing gains.
Shipping giant Maersk led the pack, jumping 10.35% after surpassing fourth-quarter profit expectations. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 26% year-over-year, reaching $12.13 billion for the full year, and $3.6 billion in Q4, exceeding analyst expectations. Despite strong performance, Maersk forecast a weaker 2025, with an anticipated EBITDA between $6 billion and $9 billion.
In the automotive sector, the Stoxx autos index regained early losses, rising 0.6%, though uncertainty surrounding the impact of US tariffs on the sector persists. Volvo Cars, however, saw a 9% decline in share value after issuing a cautious outlook for 2025. The company cited increased competition from Chinese electric vehicle manufacturers and slower market growth as factors contributing to the challenging year ahead.
Meanwhile, Danish brewer Carlsberg reported slightly weaker-than-expected fourth-quarter sales and forecasted slower growth in 2025. On the earnings front, other notable reports came from companies such as ING, ArcelorMittal, AstraZeneca, Ørsted, L’Oréal, Siemens Healthineers, and Telenor.
The Bank of England was widely expected to cut interest rates by 0.25% during its meeting later in the day, marking its first rate reduction of 2025. This decision comes amid expectations of further rate cuts later in the year, with investors anticipating the central bank’s stance on inflation and the UK economy’s growth prospects.
CNBC and the Wall Street Journal contributed to this report.
