Europe Opens Lower, Markets Holding Their Breath Ahead of ECB-BoE
European stock markets opened lower on Thursday (February 5th), as investors digested a wave of corporate earnings reports and held positions ahead of central bank decisions. The Stoxx 600 opened below the flatline, while the UK's FTSE 100 fell around 0.4%. Meanwhile, France's CAC 40 rose 0.6%, Germany's DAX remained relatively flat, and Italy's FTSE MIB edged up by around 0.2%.
Earnings season is the main catalyst today. Several major names, including BBVA, BNP Paribas, Vinci, BMW, Siemens Healthineers, Anglo American, Danske Bank, ArcelorMittal, Moller Maersk, and Vestas Wind Systems, are releasing results, causing the index to be divided—depending on the results of each sector.
Shell, a particular highlight, reported weaker-than-expected fourth-quarter earnings amid lower crude oil prices. Shell's adjusted earnings were recorded at $3.26 billion, below analyst consensus of around $3.53 billion (LSEG). This result added pressure on energy stocks and made investors more selective about commodity issuers.
In addition to earnings, the market is also focusing on the monetary policy decisions of the European Central Bank (ECB) and the Bank of England, scheduled for release today. Both are expected to hold interest rates, so market focus will likely be on the language of the statements and the tone of the press conferences—whether they signal dovishness (a chance of easing) or a tighter stance.
Global sentiment has also not fully recovered. Wall Street weakened again on Wednesday after a sell-off in software stocks continued, leaving risk appetite in global markets fragile. As a result, today's European opening felt "half-hearted": many investors opted to wait and see until the direction of central banks and the quality of earnings become clearer.
Source: Newsmaker.id
