This is CNBC’s live blog covering European markets.
European markets were mixed on Wednesday, as traders digested dissappointing corporate updates and awaited the latest U.S. inflation data.
The pan-European Stoxx 600 index traded flat at around 11:15 a.m. London time, with sectors pointing in opposite directions. Retail stocks led the losses, down 2.5%, while media stocks rose 1.1%.
Shares of Spanish clothing giant Inditex fell 6% after the Zara owner posted interim nine-month and quarterly results. The fashion retailer flagged that its revenues between Nov. 1 and to Dec. 9 jumped 9% from the same period of last year on a constant currency basis.
German online retailer Zalando, meanwhile, tumbled as much as 10% after it agreed to acquire the fashion group About You. Shares of Zalando were last seen trading 3.4% lower.
The U.S consumer price index data will likely influence how the Federal Reserve proceeds on interest rates at its Dec. 17-18 meeting. Economists polled by Dow Jones forecast that headline inflation rose 0.3% in November and 2.7% over the prior 12 months.
Asia-Pacific markets were mixed Wednesday, after major Wall Street benchmarks declined Tuesday ahead of the data, while U.S. stock futures were near flat.
Trump’s White House return is already pushing Europe and the UK closer together
President-elect Donald Trump has not yet re-entered the White House, but the U.K. and neighboring European Union are already working closer together to protect themselves against potential trade and defense confrontations with the incoming U.S. leader.
U.K. Chancellor Rachel Reeves travelled to Brussels on Monday to convene with her EU counterparts in the first such encounter since Britain left the European Union in 2020. Her host, Eurogroup President Paschal Donohoe, said he hoped this would be the first of “many” meetings.
British Chancellor of the Exchequer Rachel Reeves talks to the media at the EU Council headquarter on Dec. 9, 2024 in Brussels, Belgium.
A senior EU diplomat, who also did not want to be named due to the sensitivity of the talks, told CNBC that the bloc could benefit from being closer to the U.K. because of Britain’s historical “special relationship” with the United States.
— Silvia Amaro
Upside risks for U.S. inflation ‘rather moderate’ in 2025, Quintet’s Antonucci says
Daniele Antonucci, chief investment officer at Quintet Private Bank, said upside risks for U.S. inflation appear to be “rather moderate” over the coming months.
His comments come ahead of highly anticipated U.S. inflation data. The consumer price index reading is seen as likely to influence how the Federal Reserve proceeds on interest rates at its Dec. 17-18 meeting.
“If there is an upside risk to inflation that we might see, that’s further down the line,” Antonucci told CNBC’s “Squawk Box Europe” on Wednesday.
“And that has to do with the Fed, even though there is … consensus that the fiscal stimulus is going to be positive for economic growth, there is maybe less focus on the idea that that could be inflationary on longer horizons,” he added.
— Sam Meredith
Sweden’s Klarna Bank fined $45.5 million for violating anti-money laundering rules
Sweden’s financial regulator on Wednesday fined Klarna Bank 500 million Swedish krona ($45.5 million) for breaking anti-money laundering regulations.
An investigation of the company for the period between April 2021 and March 2022 found Klarna was in violation of several key rules, including a lack of assessments for how the bank’s products and services could be used for money laundering or terrorist financing.
Buy now, pay later firms like Klarna and Block’s Afterpay could be about to face tougher rules in the U.K.
Klarna, which is known for its popular buy now, pay later business, said last month that it had confidentially filed initial public offering documents with the U.S. Securities and Exchange Commission.
— Sam Meredith
Adidas shares dip after authorities raid German headquarters
Shares of Adidas traded as much as 1.5% lower on Wednesday after authorities raided the sportswear firm’s German headquarters in connection with a years-long tax investigation.
The stock price, which is up nearly 30% year-to-date, was last seen trading off by around 0.5%.
Authorities are investigating customs and tax regulations for products imported into Germany over a roughly five-year period from October 2019 to August this year, a spokesperson said Tuesday.
“The company does not expect any significant financial impact in connection with the investigation,” Adidas said in the statement.
— Sam Meredith
Zalando shares drop after About You acquisition announcement
Online retailer Zalando tumbled toward the bottom of the Stoxx 600 index Wednesday, with shares of the Frankfurt-listed firm down around 8% shortly after 8:30 a.m. London time.
The company announced Wednesday that it plans to buy rival retailer About You for 6.50 euros per share, valuing the deal at up to 1.1 billion euros ($1.2 billion).
— Chloe Taylor
TUI shares fall 6%
Shares of Germany-based TUI fell more than 6% on Wednesday after Europe’s largest tour operator reported full-year results through to Sept. 30 in line with analyst expectations.
TUI posted earnings before interest and taxes (EBIT) for its financial year of 1.3 billion euros ($1.36 billion), up 33% from 0.98 billion euros from last year. Analysts polled by LSEG had expected annual profit to come in at 1.29 billion euros.
A Boeing 787 ‘Dreamliner’ plane with the logo of tourism giant TUI at Hanover airport in Langenhagen, central Germany.
For the next financial year, TUI said, it expects EBIT to increase by 7% to 10%, primarily driven by expectations for summer travel demand, while revenue is anticipated to grow by 5% to 10%.
— Sam Meredith
Europe stocks open lower
European stocks opened slightly lower on Wednesday as market participants awaited the release of U.S. inflation data.
The pan-European Stoxx 600 index traded down 0.2% shortly after the opening bell, with most sectors in negative territory.
— Sam Meredith
Oil prices edge higher
Oil prices were trading slightly higher on Wednesday morning, with energy market participants expecting demand to rise in China, following Beijing’s announcement of “moderately” looser monetary policy next year.
International benchmark Brent crude futures with February expiry traded 0.5% higher at $72.55 per barrel at around 7:15 a.m. London time.
U.S. West Texas Intermediate crude futures with January expiry, meanwhile, traded 0.5% higher at $68.94.
— Sam Meredith
Inditex revenues jump as holiday season kicks off
ZARA store in Warsaw, Poland on November 26th, 2024.
Zara owner Inditex posted interim nine-month earnings on Wednesday, flagging that its revenues between Nov. 1 and to Dec. 9 jumped 9% from the same period of last year, on a constant currency basis.
In the nine months to Oct. 31, sales in constant currency grew 10.5%, while gross profit picked up by 7.2% year-on-year to €16.3 billion ($17.16 billion).
Shares of the Spanish fashion giant, which is set to publish full-year results on March 12, are up almost 40% so far this year.
— Chloe Taylor
Auto giants endured a torrid 2024 — and few expect next year to be much better
A perfect storm of challenges for the European automobile industry shows no sign of letting up, analysts say.
Automakers have struggled to come to terms with a series of headwinds on the road to full electrification, including a lack of affordable models, a slower-than-anticipated rollout of charging points, intense competition from China, tougher carbon regulations and the prospect of targeted U.S. tariffs.
Workers assemble the new all electric Porsche Macan at the Porsche assembly plant on May 6, 2024 in Leipzig, Germany.
“Automotive stocks are having a hard time globally,” analysts at Deutsche Bank said in a research note published Dec. 9.
“Unfortunately, we believe the industry is likely to head into another year of volatility and headwinds across regions. We expect more noise of potential policy implications in the US, further restructuring announcements in Europe, muted demand ex China and pricing to soften,” they added.
— Sam Meredith
CNBC Pro: What’s behind Siemens Energy’s 300% rise this year — and what’s next?
Spun off from its parent company during the Covid-19 pandemic, Siemens Energy has been on a roller coaster over the past 18 months — from a near-death drop to a dizzying climb of over 310% this year.
Despite these gains, investors and analysts remain bullish on the company’s shares rising even further.
CNBC Pro subscribers can read more here.
— Ganesh Rao
European markets: Here are the opening calls
European markets are expected to open in negative territory Wednesday.
The U.K.’s FTSE 100 index is expected to open 33 points lower at 8,244, Germany’s DAX down 52 points at 20,295, France’s CAC down 14 points at 7,372 and Italy’s FTSE MIB down 21 points at 34,524, according to data from IG.
Earnings are set to come from Inditex and OPEC releases its latest monthly oil market report Wednesday.
— Holly Ellyatt
