European equity indices traded in a mixed fashion on Wednesday, helped by indications of U.S.-China trade talks as investors digested more corporate earnings ahead of a monetary policy announcement from the Federal Reserve.
At 03:05 ET (07:05 GMT), the DAX index in Germany climbed 0.1%, while the CAC 40 in France dropped 0.3% and the FTSE 100 in the U.K. fell 0.2%.
U.S.-China trade talks
The tone in Europe has been boosted to a degree by the news that trade talks between the U.S. and China trade are set to start shortly, raising hopes for a de-escalation in an ongoing trade war that has roiled markets and threatened to plunge the global economy into recession.
U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet with their Chinese counterparts for trade negotiations in Switzerland this week, their offices said on Tuesday.
While this announcement marks the clearest signal yet of an openness from both sides to talk, whether this will result in immediate de-escalation remains to be seen, especially as U.S. President Donald Trump recently signalled he was in no hurry to sign a trade deal with any country.
The People’s Bank of China on Wednesday also said it will reduce bank reserve requirements and inject more liquidity into the economy to help weather headwinds from the trade turmoil.
Fed meeting adds to uncertainty.
Elsewhere, investors are gearing up for the conclusion of the Federal Reserve’s first policy meeting since President Trump announced “reciprocal” tariffs in early April.
The U.S. central bank is widely expected to leave interest rates unchanged later Wednesday, but market participants will listen to the associated comments from Fed chair Jerome Powell for insights into the path of rates and the state of the economy.
The military flare-up between India and Pakistan is also likely to keep investors on edge, while the economic data slate in Europe largely centres around eurozone retail sales for March.
Novo Nordisk cuts full-year growth forecast.
It is another busy day for European earnings, in what has generally been a well-received quarter.
Novo Nordisk (NYSE: NVO) reported a better-than-expected rise in first-quarter net profit, but the Swiss drugmaker lowered its full-year sales growth forecast on weaker demand for its blockbuster Wegovy weight loss drug.
BMW (ETR: BMWG) confirmed its 2025 outlook, with the German auto giant saying it expected some of the tariffs that have been imposed on vehicle imports to decline from July.
Siemens Healthineers (ETR: SHLG) posted a 6.8% jump in second-quarter revenue and a 25% rise in net income, but the German healthcare company widened its full-year earnings outlook due to mounting pressure from global tariffs.
French electrical and digital building infrastructure group Legrand (EPA: LEGD) indicated that the financial impact of U.S. tariffs on Chinese imports will be around $150 million to $200 million this year.
Orsted (CSE: ORSTED) reported stronger-than-expected first-quarter operating results on Wednesday, but the Danish energy company acknowledged ongoing difficulties in the offshore wind sector, dropping its Hornsea 4 offshore wind project in the U.K.
Crude boosted by potential trade talks.
Oil prices rose Wednesday, pushing away from four-year lows on indications of U.S.-China trade talks and signs of healthy demand in the world’s largest consuming nation.
At 03:05 ET, Brent futures climbed 1.2% to $62.88 a barrel, and U.S. West Texas Intermediate crude futures rose 1.4% to $59.90 a barrel.
U.S. crude stocks fell by 4.5 million barrels in the week ended May 2, according to data from the American Petroleum Institute on Tuesday, indicating demand remains strong.
Official U.S. government data from the Energy Information Administration is due later in the session.
Both crude benchmarks plunged to a four-year low recently after the decision of the Organisation of Petroleum Exporting Countries and allies, known as OPEC+, to speed up output increases, stoking fears of oversupply at a time when U.S. tariffs have increased concerns about demand.
