Feb 04 ,2026
Synopsis:
European equity markets ended mixed to mostly higher Wednesday. FTSE 100 among outperformers and hit a new record high, helped by M&A news and corporate updates. Swiss SMI and French CAC closed up 1%. DAX underperformed amid weakness in tech sector and construction/materials. OMX Copenhagen slid some 6.7% as Novo Nordisk's 2026 guidance disappointed.
Market looking through macro updates ahead of ECB and BoE policy updates on Thursday. Both widely expected to leave policy unchanged. London Times and CityAM shadow MPCs expect the BoE to leave key bank rate unchanged at 3.75% on Thursday. After two 5-4 split votes in November and December, CityAM panel voted 7-2 in favor of unchanged policy and London Times panel unanimous. While unemployment on the rise, there are thoughts recent inflation data and other surveys suggest upward price pressure still needs squeezing out and caution warranted. Recent business surveys and PMIs showed underlying cost pressures may still be rising, and economic activity might be holding up better than expected.
On the macro data front, Eurozone headline inflation eased to 1.7% y/y as expected. Big drop in energy prices an influence. Has been flagged by ECB in December meeting and incorporated in updated staff projections. Core reading weaker than forecast and services prices weaker. Final Eurozone PMI showed slowdown in activity in January, with services reading revised lower. UK services PMI revised lower, yet still highest levels in five months. Think tank NIESR estimates that Chancellor Reeves has already run out of fiscal headroom despite building bigger buffer of £20B via £26B in tax rises.
Busy session for European earnings, with banks, pharmas in focus. Banco Santander (SAN.SM) (3.5%) reported Q4 attributable net income €3.76B vs FactSet €3.45B and agreed to acquire Webster Bank (WBS) for $12.2B in cash and shares. Shares downgraded to equal-weight from overweight at Morgan Stanley and to neutral from buy at Alantra Equities. Credit Agricole (ACA.FP) reported Q4 net income €1.03B vs consensus €960.3M, raised dividend +3% y/y. DNB Bank (DNB.NO) +2.3% reported Q4 net income NOK11.2B vs consensus NOK10.0B, raised dividend ~ +7.5% y/y, initiated share buy-back program. Svenska Handelsbanken (SHB.A.SS) reported Q4 EPS SEK3.01 vs FactSet SEK2.73. UBS (UBSG.SW) shares lower on back of its earnings; In pharma, Novartis (NOVN.SW) reported mixed Q4; softer FY26 guidance implies cuts to consensus. GSK (GSK.LN) reported in-line to better than expected Q4/FY result; consensus already at top end of FY26 guidance. GSK also reaffirmed 2031 sales outlook of more than £40B. Novo Nordisk (NOVO.B.DC) strong Q4 earnings overshadowed by cautious 2026 guidance pointing to declines in sales and EBIT; shares dived. In insurance space, Zurich Insurance Group (ZURN.SW) and Beazley (BEZ.LN) have reached agreement in principle: Beazley shareholders to receive a total value of up to 1,335p per Beazley share. Infineon (IFX.GR) reported results and also confirmed acquisition of the non-optical analog/mixed-signal sensor portfolio from ams OSRAM Group (AMS.SW) for €570M. Henkel (HEN3.GR) agreed to acquire Stahl Parent B.V. for a purchase price of €2.1B
Elsewhere, focus remained on sharp selloff in European software, data and advertising names amid sharp re-pricing of business-model risk following Anthropic's Claude legal plug-in news yesterday, which crystallized fears over AI disruption.
European building materials stocks such as HEI.GR and HOLN.SW under pressure while chemicals advanced, following Handelsblatt reported EU Commission plans to weaken EU Emissions Trading System (ETS) by increasing available emission certificates and delaying auction deadlines. Commission did not confirm report, stating it would present ETS review proposals in July (Carbon-Pulse). Goldman Sachs warned lower CO2 prices from increased allowances could reduce marginal costs for high-emitting producers, spurring near-term price competition and eroding profits. Long-term, greater allowances could diminish competitive advantages for decarbonization leaders and weaken carbon capture investment cases. Autos & Parts benefited from M&A and partnership chatter, including Ford-Geely tech-sharing discussions and Tesla's (TSLA) 9% China shipment gain.
Looking ahead to tomorrow, apart from the BoE and ECB announcements, focus on another heavy earnings session with rcelorMittal (MT.NA), Assa Abloy (ASSA.B.SS), BNP Paribas (BNP.FP), BBVA (BBVA.SM), Shell (SHEL.LN) and BMW (BMW.GR) among the many names on the agenda. Macro data releases out tomorrow include Germany Dec factory orders, industrial production, Jan construction PMI, France Dec industrial production, Italy Dec retail sales, Eurozone Dec retail sales, UK Jan construction PMI.
Digest:
Sectors - STOXX Europe 600:
Outperformers:
Chemicals +4.76%, Autos & Parts +3.61%, Telecom +3.57%, Food & Beverage +2.74%, Travel & Leisure +2.24%, Retail +2.08%, Persnl & HHold Goods +1.69%, Insurance +1.58%, Real Estate +1.00%, Utilities +0.93%, Oil & Gas +0.60%
Underperformers:
Technology (2.52%), Financial Svcs (1.31%), Basic Resources (1.28%), Ind Goods & Svcs (1.23%), Banks (0.87%), Media (0.71%), Construct & Mtls (0.66%), Health Care (0.34%)
Macro:
EU lawmakers decide to resume work on enacting U.S. trade deal -- Reuters
Eurozone inflation drops well below target ahead of ECB rate decision -- ING Think
Italy budget watchdog UPB raises 2026 GDP growth to 0.7%, lowers 2027 -- Reuters
Italy, France and Germany to lead EU critical materials stockpiling plan, sources say -- Reuters
European Council agrees position on legal framework to provide €90B in financial support to Ukraine -- link
Polish Central Bank Holds Rates Again as Economy Accelerates -- Bloomberg
EU is weakening its most important climate protection instrument and extending free certificate -- Handelsblatt
Company news:
Notable Gainers
+60.4% GEMD.LN (Gem Diamonds £0.05, +0.02) -- Q4 trading update
+24.2% SOI.FP (SOITEC €30.04, +5.94) -- Q3 revenue
+15.1% ALIF.B.SS (AddLife SEK156.80, +20.40) -- Q4 earnings
+13.3% CLN.SW (Clariant CHF8.34, +0.96) -- sale of 14.6% stake in Stahl Parent B.V. to Henkel
+10.6% DCC.LN (DCC £50.85, +4.90) -- Q3 trading statement
+10.5% ENT.LN (Entain £0.00, +0.62) -- reports BetMGM FY25 Business Update; expects FY26 Net Revenue between $3.1 - $3.2B and adj EBITDA between $300 - $350M
+9.9% AUS.GR (AT & S Austria Technologie & Systemtechnik €50.20, +4.50)
+9.9% LOOMIS.SS (Loomis SEK407.00, +36.60) -- Q4 earnings
+9.8% SVED.B.SS (Svedbergs Group SEK72.80, +6.50) -- Q4 earnings
+9.0% MF.FP (Wendel €87.70, +7.30) -- acquires Stahl Parent B.V. for €2.1B
+7.6% STERV.FH (Stora Enso €10.59, +0.75) -- Q4 earnings
+7.6% GSK.LN (GSK Plc £20.63, +1.48) -- Q4 earnings
+7.4% WEW.GR (Westwing Group €14.90, +1.05) -- initiated buy at Berenberg
+7.3% BEZ.LN (Beazley £12.57, +0.85) -- agrees to Zurich Insurance Group offer of 1,335p/sh
+7.0% CICN.SW (Cicor Technologies CHF132.50, +8.50) -- initiated buy at UBS
+6.7% ROCK.B.DC (Rockwool DKK0.00, +14.40) -- Q4 earnings
+6.3% UPM.FH (UPM-Kymmene €25.41, +1.49) -- Q4 earnings
+5.6% AMBU.B.DC (Ambu DKK87.75, +4.65) -- Q1 earnings
+5.2% BAS.GR (BASF SE €49.39, +2.46) -- sale of 16.1% stake in Stahl Parent B.V. to Henkel
+5.1% OMV.AV (OMV €52.15, +2.55) -- Q4 earnings
+4.7% AMS.SW (ams-OSRAM CHF8.44, +0.37) -- sale of non-optical analog/mixed-signal sensor business to Infineon for €570M in cash
+4.1% FORTUM.FH (Fortum €20.14, +0.78) -- Inderes upgrade
+4.0% LRE.LN (Lancashire Holdings £6.45, +0.25)
+3.7% BKG.LN (Berkeley Group Holdings £43.74, +1.56) -- JPMorgan upgrade
+3.6% SCR.FP (SCOR SE €29.02, +1.00) -- Jan. 2026 P&C reinsurance renewals; management changes
+3.6% DSV.DC (DSV A/S DKK1,840.00, +64.50) -- Q4 earnings
+3.3% DNB.NO (DNB Bank NOK293.00, +9.40) -- Q4 earnings; share buy-back programme of up to 0.5% of its share capital
+3.1% PEAB.B.SS (Peab SEK93.70, +2.75) -- Q4 earnings
+2.4% SHB.A.SS (Svenska Handelsbanken SEK149.00, +3.50) -- Q4 earnings
+2.3% CLA.B.SS (Cloetta SEK45.90, +1.02) -- Q4 earnings
+1.6% OXB.LN (OXB £8.37, +0.13) -- new multi-year commercial supply agreement with Bristol Myers Squibb
+0.3% RILBA.DC (Ringkjøbing Landbobank DKK1,643.00, +5.00) -- new distribution policy
Notable Decliners
-19.0% PCELL.SS (PowerCell Sweden SEK20.92, -5.04) -- Q4 earnings
-17.2% NOVO.B.DC (Novo Nordisk DKK307.45, -63.15) -- Q4 earnings; initiates first DKK3.8B tranche of its DKK15B new buyback
-14.5% TPE.GR (PVA TePla €21.54, -3.64) -- prelim. FY earnings
-13.5% TOM2.NA (TomTom €5.36, -0.82) -- Q4 earnings
-12.9% DNORD.DC (D/S Norden DKK256.00, -36.80) -- FY earnings
-9.8% HEI.GR (Heidelberg Materials €214.80, -23.30) -- EU plans to weaken ETS by extending free certificates - Handelsblatt
-8.5% TKA.GR (ThyssenKrupp €11.22, -1.01)
-8.5% A1OS.GR (All for One Group €39.40, -3.60) -- Q1 earnings
-8.5% ATYM.LN (Atalaya Mining £9.48, -0.87) -- holder Urion Holdings (Malta) Limited (Trafigura) places ~13M at 945p/each
-8.4% HUSQ.B.SS (Husqvarna SEK42.04, -3.91) -- Q4 earnings; CFO steps down
-7.9% LHN.SW (Holcim CHF76.68, -6.50) -- EU plans to weaken ETS by extending free certificates - Handelsblatt
-6.9% BIOA.B.SS (BioArctic SEK318.40, -22.80)
-6.7% QLINEA.SS (Q-linea SEK24.39, -1.73) -- Q4 earnings
-6.4% SIE.GR (Siemens AG €242.75, -16.70)
-6.3% NETC.DC (Netcompany Group DKK332.20, -22.20) -- SEB upgrade
-6.3% UBSG.SW (UBS Group CHF35.17, -2.32) -- Q4 earnings
-6.3% WRT1V.FH (Wartsila €33.48, -2.21) -- Q4 earnings; further expands production capacity in Finland by 35%
-6.1% BRG.NO (Borregaard NOK183.20, -11.80) -- Q4 earnings
-5.7% YOU.LN (YouGov £2.10, -0.13) -- H1 trading update
-4.8% MELE.BB (Melexis €57.50, -2.90) -- FY earnings
-4.5% PRX.NA (Prosus €45.76, -2.14) -- three-year agreement with Amazon Web Services (AWS) to scale AI applications
-4.2% DIM.FP (Sartorius Stedim Biotech €184.45, -8.15)
-3.7% ODF.NO (Odfjell NOK131.40, -5.00) -- Norne Securities downgrade
-3.6% KNOS.LN (Kainos Group £8.00, -0.31)
-3.5% SAN.SM (Banco Santander €10.81, -0.39) -- Q4 earnings; acquires Webster Bank for $12.2B in 65% cash and 35% stock; Morgan Stanley downgrade; Alantra Equities downgrade
-3.3% BONAV.B.SS (Bonava SEK13.00, -0.44) -- Q4 earnings
-3.2% VITR.SS (Vitrolife SEK89.50, -2.90)
-3.2% BARC.LN (Barclays £0.00, -0.16) -- Barclays and NatWest to be involved this week in the bidding process for Evelyn Partners at more than £2B for the wealth management group - Sky
-2.9% WOSG.LN (Watches of Switzerland Group £4.94, -0.15) -- Q3 trading update
-2.8% ACA.FP (Credit Agricole €18.18, -0.52) -- Q4 earnings
-2.5% WPP.LN (WPP Group £2.58, -0.07)
-2.2% SF.SS (Stillfront Group SEK4.60, -0.11) -- final FY earnings
-2.1% DEMANT.DC (Demant DKK194.30, -4.10) -- ABG Sundal Collier downgrade
-2.0% IFX.GR (Infineon Technologies €39.53, -0.84) -- Q1 earnings
-2.0% HBR.LN (Harbour Energy £2.26, -0.05) -- Goldman Sachs downgrade
-1.9% PUB.FP (Publicis Groupe €74.94, -1.46) -- Barclays downgrade
-1.6% LSEG.LN (London Stock Exchange Group £71.10, -1.12)
-1.4% ENOG.LN (Energean £8.59, -0.12) -- Jefferies downgrade
EU companies reporting tomorrow:
Earnings:
Benelux: ArcelorMittal (MT.NA)
Germany: Siemens Healthineers (SHL.GR), Aurubis (NDA.GR), Heidelberger Druckmaschinen (HDD.GR), Novem Group (NVM.GR), Bastei Lübbe (BST.GR), Dynavox Group (DYVOX.GR)
Switzerland: Valiant Holding (VATN.SW), Swiss Prime Site (SPSN.SW), Luzerner Kantonalbank (LUKN.SW)
France: BNP Paribas (BNP.FP), VINCI (DG.FP), X-FAB Silicon Foundries (XFAB.FP)
Denmark: Maersk (MAERSK.B.DC), Danske Bank (DANSKE.DC), Vestas Wind Systems (VWS.DC), Genmab (GMAB.DC), Pandora (PNDORA.DC), GN Store Nord (GN.DC), Solar (SOLAR.B.DC), NNIT (NNIT.DC), Gabriel Holding (GABR.DC)
Sweden: Assa Abloy (ASSA.B.SS), Saab (SAAB.B.SS), Swedish Orphan Biovitrum (SOBI.SS), Evolution (EVO.SS), Volvo Car (VOLCAR.B.SS), Addtech (ADDT.B.SS), AarhusKarlshamn (AAK.SS), Mycronic (MYCR.SS), Fabege (FABG.SS), Wallenstam (WALL.B.SS), Pandox (PNDX.B.SS), NCC (NCC.B.SS), Röko (ROKO.B.SS), Bufab (BUFAB.SS), AFRY (AFRY.SS), Nolato (NOLA.B.SS), Norion Bank (NORION.SS), Attendo (ATT.SS), Betsson (BETSB.SS), Modern Times Group MTG (MTG.B.SS), Bilia (BILI.A.SS), New Wave Group (NEWA.B.SS), Troax Group (TROAX.SS), Scandi Standard (SCST.SS), MilDef Group (MILDEF.SS), Fenix Outdoor International (FOI.B.SS), Eastnine (EAST.SS), Hexatronic Group (HTRO.SS), XANO Industri (XANO.B.SS), Hansa Biopharma (HNSA.SS), Rejlers (REJL.B.SS), CellaVision (CEVI.SS), Studsvik (SVIK.SS), Nobia (NOBI.SS), Rugvista Group (RUG.SS), Orexo (ORX.SS), Pricer (PRIC.B.SS), Fractal Gaming Group (FRACTL.SS), I-Tech (ITECH.SS), Bactiguard Holding (BACTI.B.SS), Ascelia Pharma (ACE.SS), Fingerprint Cards (FING.B.SS)
Finland: Sampo (SAMPO.FH), Neste (NESTE.FH), Konecranes (KCR.FH), Kesko (KESKOB.FH), Alma Media (ALMA.FH), Fiskars (FSKRS.FH), Aktia Bank (AKTIA.FH), Metsa Board (METSB.FH), F-Secure (FSECURE.FH), Digia (DIGIA.FH), Detection Technology (DETEC.FH)
Norway: Nordic Semiconductor (NOD.NO), DNO (DNO.NO), BW Energy (BWE.NO), Norske Skog (NSKOG.NO)
Southern Europe: Banco Bilbao Vizcaya Argentaria (BBVA.SM), Logista Integral (LOG.SM), Banco BPM (BAMI.IM), FinecoBank (FBK.IM), Credito Emiliano (CE.IM)
UK: Shell (SHEL.LN)
Other: Icelandair Group (ICEAIR.IR)
Trading Update:
DACHs: Bayerische Motoren Werke (BMW.GR), Renk Group (R3NK.GR)
France: Equasens Group (EQS.FP), Guerbet (GBT.FP)
UK: Anglo American (AAL.LN), Compass Group (CPG.LN), Vodafone Group (VOD.LN)
Traffic: Norwegian Air Shuttle (NAS.NO), Finnair (FIA1S.FH)
CMD/Events: Hannover Re (HNR1.GR), Sligro Food Group (SLIGR.NA), Cereno Scientific (CRNO.B.SS)
Data:
Economics:
Jan Services PMI
UK 54.0 vs preliminary 54.3
Eurozone 51.6 vs consensus 51.9 and prior 52.4
Germany 52.4 vs consensus 53.3 and prior 52.7
France 48.4 vs consensus 47.9 and prior 50.1
Italy 52.9 vs cons 51.4 and prior 51.5
Sweden 54.3 vs cons 55.5 and prior revised 56.3 from 56.7
Spain 53.5 vs cons 56.6 and prior 57.1
Jan Prelim CPI
Netherlands +2.4% y/y vs cons +2.9% and prior +2.8%
Finland +1.0% y/y vs cons +1.6% and prior +1.7%
Austria +2.0% y/y vs cons +3.1% and prior +3.8%
Markets:
WTI Crude (Mar 26): +$0.09 or +0.14% to $63.30
€-$ (0.0023) or (0.19%) to 1.1796
£-$ (0.0050) or (0.37%) to 1.3648
€-£ +0.0016 to 0.8645
S&P 500 (0.56%)
Performance year-to-date
FTSE 100: +4.74%
DAX: +0.46%
CAC: +1.38%
MIB: +3.76%
Stoxx 600: +4.38%
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