European Stocks Set to End November Little Changed

European stocks closed lower for an eighth session on Wednesday amid more concerns that higher energy prices will raise interest rates and dent earnings prospectives, while markets assessed a batch of earnings results. The Eurozone's STOXX 50 fell 0.4% to 5,814 and the STOXX 600 dropped 0.7% to 602. The US signaled it will maintain the ongoing blockade of Iranian tankers from the Strait of Hormuz in the time being, extending the impasse the prevents tankers from exporting energy and triggering another increase in energy prices. Financial companies and industrials fell further, with Munich Re, Allianz, and Siemens dropping between 3% and 2%. Deutsche Bank dropped nearly 3% after beating first quarter estimates but flagging higher credit provisions. Also, Mercedes Benz and Iberdrola closed lower after posting their results. On the other hand, Airbus and Adidas soared by 5.1% and 8.3%, respectively, on the optimistic guidances. The Fed was due to maintain rates unchanged after the bell.

Both the STOXX 50 and STOXX 600 slipped into negative territory on Wednesday, each falling around 0.3% and extending their losing streak to an 8th consecutive session. Investors remained focused on fresh corporate earnings while bracing for key monetary policy decisions from the Fed later today and the ECB tomorrow. At the same time, oil prices continued on the rise and reports showed that President Trump has instructed aides to prepare for a prolonged blockade of Iran, raising the risk of continued disruption in the Strait of Hormuz. AstraZeneca was down 1.5% as the company reconfirmed its full-year 2026 guidance. UBS jumped 4% after the lender posted an 80% yoy increase in net profit. Deutsche Bank tumbled 2.3% as its results failed to impress. Adidas soared 6.6% after reporting upbeat results driven by strong demand for its football, running, and training products. Shares of Pernod Ricard were down 2.2% after the company ended merger talks with Jack Daniel's owner Brown-Forman.

Both the STOXX 50 and STOXX 600 swung around the flatline on Wednesday, following a seven-session losing streak, as investors focused on fresh corporate earnings while bracing for key monetary policy decisions from the Fed later today and the ECB tomorrow. At the same time, sentiment remained cautious amid ongoing tensions in the Middle East, with no signs of progress and reports that President Trump has instructed aides to prepare for a prolonged blockade of Iran, raising the risk of continued disruption in the Strait of Hormuz. AstraZeneca was down 0.9% as the company reconfirmed its full-year 2026 guidance. UBS jumped almost 5% after the lender posted an 80% yoy increase in net profit. Deutsche Bank tumbled 3% as its results failed to impress. Adidas soared 7.2% after reporting upbeat results driven by strong demand for its football, running, and training products. Shares of Pernod Ricard were down 1.6% after the company ended merger talks with Jack Daniel's owner Brown-Forman.