European markets close mixed; Novo Nordisk extends losses

The pan-European Stoxx 600 index provisionally closed just below the flatline on Wednesday, with sectors diverging as second quarter earnings season ramped up.

The U.K.’s FTSE 100 finished flat, while France’s CAC 40 nudged 0.06% higher, and Germany’s DAX rose 0.23%.

The euro extended its recent slide against the U.S. dollar, taking losses since the EU-U.S. trade deal announcement over the weekend to 2.3%. The U.S. dollar index was 0.6% higher following better-than-expected economic growth data and ahead of the Federal Reserve’s interest rate decision.

U.S. stock markets are little changed ahead of the Federal Reserve’s interest rate decision due at 2 p.m. ET (7 p.m. U.K. time).

A rate hold is widely expected, though investors will be looking out for any dissenting votes among policymakers, as well as the central bank’s messaging on the state of the U.S. economy. Earlier Wednesday, figures showed GDP growth came in at a hotter-than-expected 3% for the second quarter.

Markets are mixed in Europe, with the regional Stoxx 600 index just above the flatline. Autos stocks are 1.3% lower as earnings season reveals more about the hit from U.S. tariffs on the sector. Construction, utilities and travel are pulling slightly higher.

— Jenni Reid

The Prada Group on Wednesday posted an uptick in first-half sales, led by continued demand for its popular Miu Miu brand.

Group revenues rose 9% year-over-year on a constant currency basis over the six-month period to 2.74 billion euros, slightly shy of the 2.76 billion forecast by LSEG analysts. Sales of Miu Miu, meanwhile, rose 49% over the first half.

First-half operating profit came in at 619 million euros versus 624.6 million euros forecast.

Group Chief Executive Officer Andrea Guerra cited ongoing challenges facing the luxury sector but said he expected them to be more cyclical than structural.

“Prada showed resilience against increasingly subdued demand dynamics … Miu Miu continued on a healthy path of sustainable growth,” he added,

— Karen Gilchrist

The U.S. economy expanded at a faster-than-expected pace during the second quarter of the year thanks in part to strong consumer spending. GDP grew by 3%, while economists polled by Dow Jones expected a 2.3% increase.

The resiliency comes even as the Trump administration moves forward with its tariff plans.

— Fred Imbert

A slew of corporate earnings has driven market divergence today, with the FTSE 100 down 0.3% by midday in London, France’s CAC 40 up 0.43% and Germany’s DAX up 0.17%. Investors are also assessing euro zone growth figures that were slightly ahead of forecasts.

Retailer Adidas is down 7.7% after the retailer reported a double-digit million euro hit from U.S. tariffs in the second quarter, along with weaker-than-expected sales.

The biggest gainer on the Stoxx 600 is Dutch coffee and tea company JDE Peet‘s, up 13% after reporting a 22.5% year-on-year rise in half-year sales, despite the spike in coffee prices. The owner of brands including Jacobs, L’Or and Douwe Egberts also hiked its outlook for sales growth, profit and free cash flow.

At the other end of the index, Italian hearing aid retailer Amplifon is down 24% after cutting its outlook as a “clear weakening in consumer confidence” hit its core markets including Southern Europe, North America and China.

— Jenni Reid

Novo Nordisk shares on the Copenhagen exchange are continuing their slide by falling 2.5% after the Danish pharmaceutical giant slashed its full-year guidance earlier in the week.

The stock closed down 23% on Tuesday. Read the full story here.

Spanish giant Banco Santander‘s retail focus has shielded it from the brunt of the market impact waged by U.S. tariffs, the bank’s chief financial officer told CNBC’s “Squawk Box Europe” shortly after the lender posted record second-quarter profit.

 “70% of Santander is retail and commercial. This is [small and medium-sized enterprises], individuals, private banking… these segments are not very much affected by these macro conditions. We’ve seen some anecdotal evidence, some companies have postponed investment decisions,” CFO Jose Garcia Cantera said Wednesday. “The strength of Santander is that we are a retail commercial bank, highly diversified.”

He nevertheless noted that the European Union’s long-awaited and recently struck trade deal with Washington would result in a “positive” for regional markets, as it “eliminates months of uncertainty.”

Addressing the broader macro-economic landscape, Cantera said Santander expects another interest rate cut from the European Central bank toward the end of the year and two further trims from the U.S. Federal Reserve within six months, “probably the first in September, and the second one between the end of the year [and] the beginning of next year.”

— Ruxandra Iordache

Luxury carmaker Porsche has said that ongoing macroeconomic and geopolitical challenges have led to a sharp drop in profit and sales for the first six months of the year.

“We continue to face significant challenges around the world. And this is not a storm that will pass,” said Oliver Blume, CEO of Porsche. “The world is changing dramatically – and, above all, differently to what was expected just a few years ago. Some of the strategic decisions made back then appear in a different light today.”

Blume is also the chief executive of Volkswagen.

Porsche reported a 67% drop in operating profit to 1 billion euros ($1.17 billion), while sales fell by 6.7% to 18.2 billion euros, marginally beating expectations.

— Ganesh Rao

Europe’s largest lender HSBC on Wednesday missed second-quarter profit expectations, mostly on account of impairment charges, according to the bank. The bank also announced a share buyback of $3 billion.

It reported profit before tax for the three months ended June of $6.3 billion, down 29% from a year ago.

Here are HSBC’s second-quarter 2025 results compared with consensus estimates compiled by the bank.

Profit before tax: $6.3 billion vs. $6.99 billionRevenue: $16.5 billion vs. $16.67 billion

Operating expenses rose by 10% compared to the same period a year ago, and were largely owed to restructuring and other related costs as well as from increased spending and investment in technology, the bank said.

Read the full story here.

—Lee Ying Shan

Luxury behemoth Hermès on Wednesday posted second-quarter sales in line with expectations

Sales rose 9% year-on-year at constant exchange rates in the three month period to 3.91 billion euros ($4.51 million), matching analyst forecasts.

Growth was recorded across all regions and marks an uptick from the first quarter’s 7% annual growth.

Executive Chairman Axel Dumas said the results reflected “the strength of the Hermès model.”

It comes as the broader luxury sector has struggled to emerge from a post-Covid-19 slump — a headwind exacerbated further this year by the prospect of U.S. tariffs.

— Karen Gilchrist

Gucci-owner Kering posted worse-than-feared second-quarter results and flagged ongoing geopolitical uncertainty as woes persist at the beleaguered luxury group.

Sales dropped 15% year-on-year on a comparable basis to 3.7 billion euros ($4.27 billion), the company said posting results after the market close Tuesday. That compares to the 3.96 billion euros forecast by LSEG analysts.

Gucci sales, which typically make up nearly half of total group revenues, plunged 25% over the quarter to 1.46 billion euros.

“Though the numbers we are reporting remain well below our potential, we are certain that our comprehensive efforts of the past two years have set healthy foundations for the next stages in Kering’s development,” Chairman and CEO François-Henri Pinault said in a statement accompanying the results.

— Karen Gilchrist

Germany’s BASF, one of the largest chemical producers, said “indirect effects” of U.S. tariffs on imports has had an impact on demand and profit margins.

“The volatility of the tariff announcements and the unpredictability of other decisions by the United States government as well as possible countermeasures by trading partners are causing a high level of uncertainty,” the company said in a statement on its second-quarter results.

BASF added that “there are indirect effects, particularly associated with demand for our products and their prices. This is mainly due to intensified competitive pressure and rising inflation. It is still not possible to fully assess the resulting effects.”

The chemicals giant’s second-quarter sales amounted to 15.8 billion euros ($18.2 billion), a decline of 2% from the same period last year.

The company also reported a 9.4% decline year-on-year in adjusted profit to 1.8 billion euros for the second quarter.

— Ganesh Rao

L’Oreal missed second-quarter sales forecasts, posting a 2.4% increase, as growth in Europe slowed more than expected. 

The cosmetics group saw a small rebound in the U.S. and China, which helped to offset weakness in other regions.

However, the company said it will push for exemptions from U.S. tariffs, warning the EU-U.S. trade deal would be costly, according to Reuters.

— Domi Suskova

Siemens Healthineers has topped revenue forecasts for the third quarter, posting 7.6% growth to 5.7 billion euros ($6.6 billion) year on year.

The German medical technology group raised the midpoints of its outlook, even as CEO Bernd Montag warned that geopolitical volatility remains high.

— Michael Considine

Santander posted a record net profit in the second quarter, coming in at 3.4 billion euros ($3.9 billion) and topping expectations. The Spanish lender also unveiled a 1.7 billion euro share buyback program as it reiterated its full year outlook.

— Michael Considine

Good morning from London.

There’s just under an hour and a half to go until stocks begin trading, with the futures tied to the Stoxx Europe 600 index pointing to a gain of 0.2% when stock markets open.

Regionally, the U.K.’s FTSE 100 and Germany’s DAX are expected to rise 0.2% as well. Meanwhile, France CAC 40 index is set to be nearly flat, according to FactSet data.

European companies including Santander, BASF, UBS, HSBC, Siemens Healthineers, Mercedes-Benz, L’Oreal and Kering have reported earnings.

— Ganesh Rao