European Markets Poised to Open Lower

European equity markets were set to open modestly higher on Wednesday, after weaker-than-expected US retail sales data strengthened expectations for Federal Reserve interest rate cuts later this year. Investor focus now turns to the delayed US jobs report due later in the session, followed by US consumer inflation data on Friday. In Europe, attention will be on Italian industrial production and Turkish retail sales figures. Markets will also digest a busy slate of corporate earnings from major companies, including TotalEnergies, Siemens Energy, Commerzbank, Heineken, and Dassault Systèmes. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both up around 0.1%.

European stock indices closed mixed on Tuesday following the record highs touched in the previous session amid contrasting earnings results from the Eurozone's largest companies. The STOXX 50 inched down to 6,050 and the STOXX 600 held at a record high of 621. SAP, Infineon, and Adyen led the gains among the tech companies to extend yesterday's rebound from the broad-software selloff in the previous week, triggered by concerns that automation tools would steal demand for specialty software as a services. Meanwhile, Ferrari soared over 10% after beating estimates on both profits and guidance. Other luxury brands were also higher after Kering also shared optimistic corporate results. On the other hand, financial services providers pared some of their recent gains with AXA, UniCredit, and Allianz dropping more than 2.5%.

Both the STOXX 50 and the STOXX 600 hovered near the flatline on Tuesday following a strong two-day rally that pushed major indices to record highs, as investors turned their attention to fresh corporate updates. BP shares slid 4% after the company halted its share buyback and reported fourth-quarter profits broadly in line with expectations. Barclays edged 0.2% lower despite posting a 12% increase in annual profit and announcing a GBP 1 billion share buyback. Allianz fell 2.4%, Prosus NV lost 1.4%, and Zurich declined 1%. On the upside, AstraZeneca climbed 2% after delivering strong quarterly results. Kering surged more than 8% after saying it expects a return to growth this year. Philips jumped 10% after beating profit expectations and forecasting higher sales and profitability. Luxury names also advanced, with LVMH up 1.3%, Hermès gaining 2.9%, and L’Oréal rising 0.9%.