European markets broadly higher as positive momentum continues
An aerial drone view shows the Reichstag (upper left corner) in Berlin, Germany, on February 22, 2025.
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LONDON — European stocks opened broadly higher on Wednesday, maintaining positive momentum seen earlier this week on hopes that the U.S. government shutdown will end soon.
The U.S. government could reopen as soon as the end of this week after the Senate on Monday evening passed a spending bill that has since moved to the House of Representatives for a final vote.
The pan-European Stoxx 600 Index rose 0.6% on Wednesday, with most major bourses and sectors in positive territory.
The U.K.’s FTSE index, which has been tracking an all-time high in recent sessions, was up about 0.2% at 8:25 a.m. in London (3:25 a.m. ET), with Germany’s DAX up 1%, France’s CAC 40 0.7% higher and Italy’s FTSE MIB — which on Tuesday surpassed its 2007 peak, reaching its highest closing level since 2001 — up 0.9%.
In the energy sector, SSE soared 12.7% on Wednesday morning after the U.K. utility company launched a £2 billion ($2.6 billion) equity raise to pay for a new five-year £33 billion investment plan to upgrade the U.K.’s electricity network. The company posted an adjusted operation profit of £655 million for the first half of the year, which missed the £684 million forecast by analysts.
Meanwhile, Germany’s largest power producer RWE advanced almost 4% in early trade after reporting pre-tax income of 2.71 billion euros in its latest earnings update. The company’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) over the nine-month period came in at 3.48 billion euros, beating analysts’ expected 3.14 billion euros.
Elsewhere in earnings, Infineon Technologies added 0.3% on Wednesday morning after the German chipmaker reported its latest earnings. Revenues came in at 14.6 billion euros for the full-year, down 2% year-on-year, but in line with analysts’ forecasts.
Other earnings due on Wednesday are due from E.ON, Experian, Alcon, Bayer, Swiss Life, Poste Italiane and ABN Amro.
In Asia Pacific markets overnight, SoftBank Group shares fell as much as 10% after the company said it sold its entire stake in U.S. chipmaker Nvidia for $5.83 billion.
In its earnings report, the Japanese conglomerate said it sold 32.1 million Nvidia shares in October, and also trimmed its T-Mobile position, raising $9.17 billion.
In the U.S., stock futures were relatively flat Tuesday night following a session where investors sold off technology names, including Nvidia, and drove a rally in more risk-off parts of the market.
Talks of a stock market bubble have not dissipated either, but investors are showing more discernment between which tech giants appear to have a leg-up in the AI race.
— CNBC’s Pia Singh contributed to this market report.
