European markets are evolving positively, against a backdrop marked by a wave of company results, contrasting macroeconomic indicators, and persistent geopolitical tensions. The CAC 40 is up 0.63% at 8,058 points and the Euro Stoxx 50 is up 0.61%. Frankfurt gained 1.03% and London 0.04%.
The meeting in China between US President Donald Trump and his Chinese counterpart Xi Jinping could help resolve the situation in the Middle East and dispel some of the uncertainties surrounding global trade. The two leaders are expected to discuss regional geopolitical tensions and trade relations between the two powers. For the occasion, Donald Trump is accompanied by around ten leaders of major US companies, including Nvidia CEO Jensen Huang, Elon Musk for Tesla, and Tim Cook for Apple.
In the Middle East, Israel is intensifying its strikes in Lebanon, where bombings have killed more than 20 people despite the ceasefire in place, according to the Lebanese Ministry of Health. This new escalation comes as direct discussions between Israel and Lebanon are set to open in Washington on Thursday.
Moving on to company movements, Stellantis (+3.13%) and STMicroelectronics (+2.33%) are leading the Parisian index, while Carrefour (-0.78%) and Airbus (-0.40%) are at the bottom. In Madrid, Telefonica soared over 6% after reassuring investors about its financial trajectory. The Spanish operator confirmed its targets for 2026 when releasing quarterly results generally in line with expectations, despite a net loss related to recent asset sales in Latin America.
In London, Burberry fell by 4.88% after reporting a decline in annual revenue and announcing the suspension of dividends to shareholders. However, for the 2025-2026 fiscal year, the British luxury giant indicated that adjusted operating profit rose to 160 million pounds sterling from 26 million the previous year. The adjusted operating margin of 6.6% increased by 570 basis points at constant exchange rates and 560 basis points in real terms, supported by £80 million in savings on operating expenses (Opex) made during this fiscal year.
Investors are also keeping a close eye on the economic outlook. In the UK, GDP grew by 1.2% year-on-year in March, surpassing analysts’ expectations of a 0.7% increase, after a 1% growth in February.
In the afternoon in the United States, markets will monitor retail sales and import price indicators, in a context of renewed inflationary tensions. Both the Consumer Price Index (CPI) and the Producer Price Index (PPI) have shown an acceleration of inflationary pressures this week, reigniting fears related to the consequences of the war in the Middle East and the surge in oil prices.
On the foreign exchange market, the euro slipped 0.03% to $1.1712.
