European markets head for higher open as traders focus on earnings reports

Chloe Taylor & Holly Ellyatt

European markets are expected to open higher as investors await more earnings releases Wednesday.

The U.K.’s FTSE 100 index is expected to open 36 points higher at 8,681, Germany’s DAX up 127 points at 22,513, France’s CAC 30 points higher at 8,076 and Italy’s FTSE MIB 126 points higher at 38,911, according to data from IG.

Earnings are in the spotlight Wednesday, with releases set to come from Adecco Group, AB InBev, E.On, Danone, Munich Re, Uniper, Stellantis, Wolters Kluwer, Aston Martin Lagonda Global Holdings, Covestro and Deutsche Telekom. Data releases include the latest German and French consumer confidence figures.

Asia-Pacific markets traded mixed overnight, with sentiment weighed on by further losses on Wall Street Tuesday after the U.S. consumer confidence reading came in much weaker than economists’ estimates.

U.S. stock futures rose overnight, however, with investors awaiting earnings from market bellwether Nvidia after the closing bell Wednesday. The report could be the next catalyst for the market.

Stellantis posts 70% drop in full-year profit

Auto giant Stellantis on Wednesday reported a sharp drop in full-year earnings as the company scrambles to take measures to improve its performance and profitability.

The mutlinational conglomerate, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, posted full-year 2024 net profit of 5.5 billion euros ($5.77 billion), down 70% from 18.6 billion euros across full-year 2023.

Analysts had expected full-year 2024 net profit to come in at 6.4 billion euros, according to an LSEG-compiled consensus.

Shares of the Milan-listed company are up over 7% year-to-date.

— Sam Meredith

World’s largest brewer AB InBev posts fourth-quarter revenue beat

World’s largest brewer AB InBev on Wednesday posted better-than-expected fourth-quarter sales despite an annual decline in volumes.

The drinks maker, whose brands include Budweiser, Corona and Stella Artois, reported an 3.4% increase in fourth-quarter revenue to $14.84 billion, versus the 2.9% decline to $14.05 billion forecast by LSEG analysts.

Full-year sales rose by 2.7% to $59.77 billion, compared to the $59.3 billion performance expected by analysts.

— Karen Gilchrist

European markets: Here are the opening calls

European markets are expected to open higher Wednesday.

The U.K.’s FTSE 100 index is expected to open 36 points higher at 8,681, Germany’s DAX up 127 points at 22,513, France’s CAC 30 points higher at 8,076 and Italy’s FTSE MIB 126 points higher at 38,911, according to data from IG.

Earnings are set to come from Adecco Group, AB InBev, E.On, Danone, Munich Re, Uniper, Stellantis, Wolters Kluwer, Aston Martin Lagonda Global Holdings, Covestro and Deutsche Telekom.

Data releases include the latest German and French consumer confidence figures.

— Holly Ellyatt

Source : cnbc.com