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 03:05 ET (08:05 GMT), the DAX index in Germany climbed 0.2% and the CAC 40 in France rose 0.1%, while the FTSE 100 in the UK fell 0.1%.
Chinese boost to sentiment
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.
The move heralds more government money moving into stock markets and comes as Beijing’s latest line of support for the struggling equity market.
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.
The Chinese economy is the second largest in the world and offers a major export market for many of Europe’s largest companies.
Trump to speak at Davos
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 to hold policy meeting
There are no major data releases in Europe on Thursday, but there is a rate decision due from Norges Bank, with the Norwegian central bank widely expected to keep rates on hold.
Puma (OTC: PMMAF) slumps on weak 2024 profit
In corporate news, Puma (ETR: PUMG) stock slumped over 13%, 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 0.2% 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 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 slipped lower Thursday, extending a recent downturn following growth in US crude inventories while traders braced for higher US production under President Donald Trump.
By 03:05 ET, the US crude futures (WTI) dropped 0.3% to $75.23 a barrel, while the Brent contract fell 0.2% to $78.81 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.
