By Harshit
LONDON, NOV. 19 —
European equity markets steadied on Wednesday after several sessions of steep declines, as investors cautiously returned to risk assets ahead of Nvidia’s highly anticipated earnings report and fresh signs that inflation pressures in the U.K. were continuing to cool.
The pan-European Stoxx 600 rose 0.4% to 564.10 by midafternoon in London (10:15 a.m. ET), reversing early losses and signaling that the broad sell-off in technology and growth-related stocks may be losing momentum.
| Index | Latest | Change | % Change |
|---|---|---|---|
| CAC 40 (France) | 7,988.55 | +20.62 | +0.26% |
| FTSE MIB (Italy) | 42,849.03 | +10.39 | +0.02% |
| FTSE 100 (U.K.) | 9,547.76 | -4.54 | -0.05% |
| DAX (Germany) | 23,286.27 | +105.74 | +0.46% |
| IBEX 35 (Spain) | 15,944.60 | +117.60 | +0.74% |
| STOXX 600 (Europe) | 564.10 | +2.24 | +0.40% |
The partial recovery followed four consecutive days of declines for European stocks, driven by a global tech rout and renewed investor anxiety that the artificial intelligence boom had pushed valuations to unsustainable levels.
Nvidia Earnings Loom Large
Markets globally have been fixated on Nvidia’s upcoming quarterly earnings, due after the U.S. market close, as a key test for the AI sector’s staying power. The chipmaker, whose shares have more than quadrupled in two years, is expected to post another strong quarter fueled by record demand for its AI graphics processors.
Analysts, however, warned that even a blowout report might not be enough to satisfy markets accustomed to outsized gains.
“Nvidia is in the spotlight not just for what it reports, but for what it signals,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown. “If guidance doesn’t match the market’s lofty expectations, we could see renewed selling pressure — not just in AI names, but across the broader tech complex.”
In the U.S., futures markets pointed higher after a volatile start to the week, with the S&P 500 and Nasdaq-100 bouncing from four straight days of losses. European sentiment appeared to mirror that cautious optimism.
Defense Stocks Slide Amid Peace Talk Rumors
Europe’s Aerospace and Defense Index fell 2.66%, hitting a two-month low after an Axios report claimed that the U.S. government is “secretly” working behind the scenes on a Ukraine-Russia peace plan.
The report sent shares of major defense contractors such as BAE Systems, Leonardo, and Saab lower, as investors weighed the implications of potential diplomatic progress on long-term defense spending.
Corporate Movers: Kering, WPP, Vivendi, Nokia in Focus
Kering SA fell 3.5% after CEO Luca de Meo reportedly told staff in an internal memo that the luxury group would downsize its store network and reduce dependence on its flagship Gucci brand.
De Meo set an 18-month deadline to return to growth across Kering’s portfolio, which includes Yves Saint Laurent and Bottega Veneta. The news comes just a month after Kering sold its beauty division to L’Oréal for €4 billion ($4.6 billion).
In the U.K., Smiths Group rose 0.4% after announcing a £1 billion ($1.3 billion) share buyback and reporting 3.5% organic revenue growth in its fiscal first quarter, signaling confidence in its cash position and growth outlook.
Shares of WH Smith surged 6.9%, rebounding from a 52-week low after the company announced CEO Carl Cowling would step down following an independent review into a £30 million accounting error in its U.S. operations earlier this year. The retailer has faced intense investor scrutiny since admitting the overstatement in July.
Meanwhile, Vivendi shares dropped 12% after earlier tumbling as much as 20% on reports that a French court could rule in favor of Bolloré Group in a case disputing whether it is Vivendi’s controlling shareholder. A ruling expected November 28 could end speculation about a mandatory takeover bid.
Nokia also saw a sharp reversal, plunging 6% after unveiling a new AI-enabled network strategy ahead of its Capital Markets Day. The Finnish telecom giant said it would restructure into two divisions — Network Infrastructure and Mobile Infrastructure — while targeting annual operating profit of €2.7 to €3.2 billion by 2028.
U.K. Inflation Cools, Rate Cut Hopes Rise
Adding to the cautious optimism, fresh data from the Office for National Statistics (ONS) showed that U.K. inflation slowed to 3.6% in October, matching forecasts and marking its lowest level since early 2021.
The figure strengthens the case for a potential rate cut from the Bank of England as soon as December, analysts said, though officials have signaled they want more confidence that price pressures are sustainably easing.
The British pound slipped 0.2% against both the U.S. dollar and the euro, trading around $1.25, as markets adjusted expectations for U.K. monetary policy ahead of next week’s Autumn Budget.
“Inflation is cooling faster than expected, and that’s giving policymakers more breathing room,” said Victoria Scholar, head of investment at Interactive Investor. “But given the fragile growth backdrop, the Bank will tread carefully before cutting rates.”
Global Context: Markets Regain Their Footing
Across the Atlantic, Wall Street appeared poised for a rebound, while Asian markets posted mixed results earlier in the day as traders monitored rising geopolitical tensions between China and Japan and signs of slower export growth in South Korea.
For Europe, however, Wednesday’s recovery marked a temporary pause in a volatile November, with investors largely sidelined ahead of key earnings and inflation updates later this week.
“Markets are regaining balance, but conviction is low,” said Chris Beauchamp, chief market analyst at IG Group. “A lot hinges on Nvidia tonight — it’s not just a stock, it’s a sentiment barometer for the entire AI trade.”