European stocks higher on corporate earnings

The DAX index in Germany jumped 0.6%, the CAC 40 in France added 0.5% and the FTSE 100 in the U.K. advanced 1.1%

European stocks rose Wednesday as investors assessed a deluge of major quarterly corporate earnings, with banking giant HSBC leading the way.

The DAX index in Germany jumped 0.6%, the CAC 40 in France added 0.5% and the FTSE 100 in the U.K. advanced 1.1%.

The pan-European STOXX 600 index closed at a new high.

There are also a number of significant companies that have reported results for investors to wade through.

HSBC stock jumped more than 5% after Europe’s largest lender beat full-year profit forecasts, even as its pretax profit slid 7%, and set a 2026 net interest income target above expectations, suggesting the bank’s planned overhaul has now been completed and further growth is in its sights.

E.ON added 1.8% after Europe’s largest energy network operator reported 2025 earnings in line with analyst expectations and raised its five-year investment plan to $56.64 billion, but also forecast 2026 net profit below this year’s level.

Diageo plunged 9% after the world’s biggest spirits maker cut its annual sales and profit forecast for the second time in four months and slashed its dividend, as it struggled to cope with weak U.S. and Chinese demand.

Adecco Group stock shed 1.3% reported fourth quarter earnings that exceeded expectations, though gross margin performance fell short of guidance, raising concerns about profitability trends for the world’s leading staffing company.

Elsewhere, data released earlier Wednesday confirmed that the German economy grew by 0.3% in the fourth quarter of 2025 compared with the previous quarter, an improvement from the flat growth seen during the previous three months.

Eurozone consumer inflation was confirmed at 1.7% annually in January, a drop of 0.6% on the month.

There was also less positive news to digest in the form of the GfK consumer sentiment index, which suggested consumer sentiment in Germany is set to worsen unexpectedly in March.

The index, published by the GfK market research institute and the Nuremberg Institute for Market Decisions, dropped to -24.7 points for March from a revised -24.2 points the month before, contrary to expectations of a rise to -23.1.