European markets are trading today with a great dose of optimism, fueled by solid earnings reports from several companies across the continent. German DAX is leading gains (DE40: +0.6%), followed by a strong performance in Vienna (AUT20: +0.5%), Milan (ITA40: +0.3%), Zurich (SUI20:+0.3%), Warsaw (W20: +0.2%), Paris (FRA40: +0.15%) and London (UK100: +0.1%).
Energy and industrial stocks are the best performers today, partially due to the substantial rebound in the French industrial sector (+3.5% MoM), especially in the case of coke, refinery, transport materials, electricity and gas. Tech is also a big winner today, with Infineon leading gains in Frankfurt.
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Volatility in Eurostoxx 600 sectors. Source: Bloomberg Finance LP
Performance of DAX-listed companies. Source: Bloomberg Finance LP
DE40 (H4)
DE40 buyers are attempting to reclaim the July consolidation range following a sharp post-tariff sell-off. Futures have already reclaimed the 10- and 30-period EMAs (yellow and light purple), suggesting improving short-term momentum. RSI still remains neutral, leaving some space for future growth. A decisive move above the 100-period EMA, currently just below the midpoint of the consolidation zone, could act as a key trigger for bullish continuation toward new highs. Conversely, a failed retest of the EMA100 may reinforce resistance and keep the index pressured near the lower boundary of the consolidation range.
Source: xStation5
Company news:
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Adecco (ADEN.CH) fell 3.6% after the company reported Q2 revenues of €5.8B (+0.4% YoY), gaining market share across all business units. EBITA margin (excl. one-offs) was 2.5%, down 60bps. Net income rose 8% to €58M. CEO Denis Machuel highlighted strong U.S. and France performance, cost discipline, and momentum in AI-driven innovation supporting future growth.
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BP (BP.UK) beat expectations with Q2 EPS of 90c (vs. 66c est.) and revenue of $47.7B (vs. $40.4B est.). Strong operational performance, five new projects online, and $3B in divestments supported results. Dividend rose 4%, with a $750M buyback. CEO vows further portfolio review, cost cuts, and performance focus. The stock is up 2.6%.
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DHL (DHL.DE) Group’s Q2 net profit rose 9.6% to €815M, with EPS up 14.3% to €0.72. EBIT grew 5.7% to €1.43B, despite a 3.9% revenue drop. Strong domestic performance and cost control offset weaker trade volumes. DHL reaffirmed its 2025 outlook, citing efficiency gains amid persistent global economic uncertainty. Shares edge 0.6% down.
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Diageo (DGE.UK) shares are up 2% after reaffirming sales growth and expanding its cost-cutting target to $625M, despite a $200M tariff hit. Strong Gen Z demand, price discipline, and marketing supported performance. Interim CEO Nik Jhangiani leads post-CEO exit, with leadership decision expected by October. Sales growth for 2026 seen as achievable.
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Eutelsat (ETL.FR) soared 6.3% after the company posted better-than-expected annual revenues of €1.23B, led by strong growth in satellite internet for government and enterprise clients. LEO satellite revenue surged 84%, driven by Ukraine and Taiwan demand. Despite a €1.1B loss from GEO asset impairments, shares rose amid optimism over restructuring, state support, and expanding non-consumer markets.
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Infineon (IFX.DE) shares rose 4.5% after it lowered its expected Q4 tariff impact and raised full-year margin forecasts. Segment margin is now seen in the high teens, with gross margin above 40%. Despite flat revenue, AI-related growth and resilience amid trade tensions support the outlook. FY revenue expected at €14.6B.
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Smith & Nephew (SN.UK) shares soared 16% after H1 operating profit rose 31% to $429M, beating estimates. The company announced a $500M share buyback amid pressure from top shareholder Cevian Capital. CEO Deepak Nath cited solid progress in orthopedics and ongoing operational improvements as the turnaround plan nears completion.
