European Stocks Rebound

European stocks closed firmly higher on Wednesday, halting four consecutive sessions of losses amid a rebound in the tech sector and stability for banks. The Eurozone's STOXX 50 added 1% to 5,870 and the STOXX 600 gained 0.7% to 611. A sharp rebound in European AI stocks matched the momentum for their US counterparts in the last session as US chip producer CEOs were due to meet with Chinese officials for potential trade agreements. Infineon surged over 10% after receiving broker upgrades, ASML jumped 5%, and Prosus added 4%. Meanwhile, a busy session for German earnings included results by Siemens, which missed revenue estimates but closed slightly higher after launching a share buyback program. Also, Allianz climbed 1.3% after reporting record first-quarter earnings and profit. Merck surged 7.3% after posting a smaller-than-expected decline in earnings and raising its 2026 guidance outlook.

European stocks traded higher on Wednesday, with the STOXX 50 rising 0.4% as it attempted to snap a four-session losing streak, while the STOXX 600 advanced 0.7%. Investor sentiment was supported by a renewed focus on corporate earnings, even as markets continued to monitor developments in the Middle East, where the conflict showed little sign of easing. Allianz climbed 1.6% after reporting record first-quarter earnings and profit. Merck surged nearly 8% after posting a smaller-than-expected decline in earnings and raising its 2026 guidance outlook. E.ON added almost 4% after a slight increase in core earnings. Other notable advances included ASML Holding (+2.2%), HSBC (+1.1%), ABB (+1.2%), and UBS (+2.0%). On the downside, Siemens slipped 0.8%, despite reporting net profit above forecasts and announcing a new €6 billion share buyback programme. RWE lost 0.7% as its results failed to impress. Meanwhile, LVMH fell 1.1%.

European equity markets were headed for a stronger open on Wednesday, rebounding from the previous session’s losses as investors focused on a fresh round of corporate earnings. Companies due to report results include Allianz, Eon, Merck, Porsche, and RWE. Meanwhile, German industrial giant Siemens unveiled a new €6 billion share buyback program spanning the next five years after reporting a first-quarter profit of €2.03 billion. On the data front, investors will monitor Eurozone GDP, employment, and industrial production figures for further clues on the region’s economic outlook. Traders also continued to track developments in the Middle East, where diplomatic efforts to end the US-Iran war have shown limited progress, while hotter-than-expected US inflation data reinforced concerns about tighter Federal Reserve policy. In premarket trading, Euro Stoxx 50 futures gained 0.9%, while Stoxx 600 futures advanced 0.7%.