European markets edge higher as oil prices surge; ECB and BOE decisions ahead
by Hugh Leask, Holly Ellyatt · CNBCIn this article
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LONDON — European stocks moved higher on Thursday as investors digested the latest reports on the Iran war and monitored a raft of corporate earnings and central bank decisions.
The pan-European Stoxx 600 was up 0.3% by 11:00 a.m. in London (6:00 a.m. E.T.), reversing losses earlier in the session, with major bourses mixed and most regional sectors turning positive.
Media stocks led losses, sliding 1.9%, as autos dropped 1.3%. Mining stocks advanced 1.3%.
Earlier, Brent crude hit a wartime high, past $126 a barrel, following a report that the U.S. military would brief President Donald Trump on potential action against Iran, raising fears that armed conflict could resume, and that the blockade of Iranian ports would continue.
Prices later fell back, with June futures for international benchmark Brent crude last seen 1.1% lower at $116.70 a barrel. U.S. West Texas Intermediate prices dipped 0.1% to $106.76.
Axios reported that the U.S. Central Command was set to present Trump plans for possible military action against Iran, citing two sources with knowledge of the matter.
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In a busy day for corporate earnings, shares in Stellantis plunged almost 7% despite the multinational jeep maker reporting adjusted operating income of 960 million euros ($1.12 billion) for the first quarter, beating consensus estimates of 568 million euros. The firm, whose brands include Jeep, Dodge, Fiat, Chrysler and Peugeot, also notched a 6% first quarter increase in net revenues year-on-year.
In contrast, the Magnum Ice Cream Company soared 12% in morning dealmaking, with organic sales growth up 4.5% year-on-year, at 1.77 billion.
Volkswagen dipped 1.1% after reporting a 14% dent in profits compared to a year ago. The German auto mainstay generated a 2.5 billion euros ($2.92 billion) profit first-quarter profit, which lagged analyst estimates.
French banks BNP Paribas and Societe Generale dropped 4.4% and 4.8%, respectively, after filing their first quarter earnings. BNP Paribas saw its first-quarter profits rise 9%, to 3.22 billion euros. SocGen's group net income reached 1.69 billion euros, up 5.5% on the same period a year earlier.
Central bank action will be in focus later with the European Central Bank and Bank of England both poised to deliver their latest monetary policy decisions on Thursday.
Neither bank is expected to change interest rates but their forward guidance will be closely watched, given the ongoing war in Iran.
Preliminary data showed euro zone growth has stuttered in recent months, with GDP in the single currency region notching just 0.1% in the first quarter. Euro zone inflation increased 3% in April, rising from 2.6% in the 12 months to March.
It's another busy day for earnings with Schneider Electric, Unilever, Glencore, ING, DHL Group, Credit Agricole, Standard Chartered, BASF, Ferrovial, Erste Group Bank, ArcelorMittal, Danske Bank, and Air France-KLM, among others, all reporting earnings.
— CNBC's Lee Ying Shan contributed to this market report.