European Stocks Inch Higher

European stock indices closed slightly higher on Wednesday as support from the heavyweight financial sector offset weakness elsewhere. The Euro STOXX 50 gained 0.3% to 6,475 and the STOXX Europe 600 inched higher to 657. Deutsche Bank gained 4.3% to lead the financial sector as it kicked off its €500 million share buyback. Also, UniCredit gained 2.5% as CEO Andrea Orcel was due to meet the German finance minister to discuss Berlin's requirements to sell their stake on Commerzbank. In the meantime, Safran and Rheinmetall added over 2% each to consolidate the strong session for industrial companies yesterday. On the other hand, SAP fell 3% following pessimistic signals from Intuit earnings in the US.

European shares extended gains on Wednesday afternoon, with the STOXX 50 up 0.6% and the broader STOXX 600 rising 0.3%, as investors awaited Nvidia’s earnings report and monitored developments around the Strait of Hormuz. Iran said it had resumed talks with Oman on managing the Strait amid mounting pressure from US President Donald Trump during the nearly six-month conflict, raising hopes the key waterway could reopen. Brent crude fell for a third straight session, helping push bond yields lower and easing inflation concerns. Investors also digested US inflation data, with the PCE price index rising 0.2% in July, above expectations. In Europe, ECB policymakers were reported to be prepared to raise rates at their September meeting, but were reluctant to signal further tightening thereafter. Among individual stocks, SAP fell around 3% after US software maker Intuit issued a disappointing forecast, while UBS downgraded the German software group to “neutral.”

European shares edged higher on Wednesday, with both the STOXX 50 and broader STOXX 600 gaining around 0.2%, as falling oil prices pushed bond yields lower on hopes that the Strait of Hormuz could soon reopen. Iran said it had resumed talks with Oman on managing the Strait of Hormuz, amid mounting pressure from US President Donald Trump during the nearly six-month conflict that has disrupted oil markets and fueled concerns over global inflation. Basic Resources led sectoral gains, rising around 1%, while the Energy index fell 1.1% as Brent crude declined for a third consecutive session. Technology shares slipped slightly as investors awaited Nvidia’s Q2 results, which are expected to provide further insight into the pace of AI-related spending. Attention is also turning to a key US inflation report due later today, which could offer further clues on the Federal Reserve’s interest-rate path.