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LONDON — European stocks opened higher Wednesday, continuing the positive sentiment seen in global markets since the start of the week.
The U.K.’s FTSE index opened 0.1% higher, Germany’s DAX was in the green with 0.7% at the open, and France’s CAC 40 gained 0.1%. The pan-European Stoxx 600 was also higher by 0.3%.
Across European equities, financials led the market with a 1% gain, with utilities and mining trailing by 0.3%.
Adidas shares stood out by trading 6% higher after the company released its fourth-quarter results on Tuesday.
The athletic apparels maker said sales grew 19% to nearly 6 billion euros ($6.25 billion) in the last three months of 2024, stripping out currency fluctuations.
Analysts from JPMorgan, BNP Paribas, Exane and Oddo raised their price target for the shares after the release. The company is set to report its full-year results in March.
“There is a lot of macroeconomic uncertainty right now, but we clearly have the goal to again grow double-digit with the adidas brand and use that growth to continue to improve our operating profit and make further progress towards our 10% margin target,” said Bjørn Gulden, CEO of Adidas.
Global stock markets have been trading higher earlier this week as investors digested the first executive orders that newly inaugurated U.S. President Donald Trump signed on Monday.
Market gains were attributed to the fact that, while Trump issued a broad memorandum directing federal agencies to assess what he sees as unfair trade policies with foreign countries, he stopped short of authorizing new levies on his first day back in office. Investors took that as a sign that he may be less gung-ho about implementing tariffs than previously expected.
In Europe, the U.K. revealed that it borrowed £17.8 billion ($21.9 billion) in December last year, £10.1 billion more than in December 2023. The figure, the highest budget deficit recorded for December in four years, was also more than the £14 billion that most economists expected.
Meanwhile, investment bank Berenberg upgraded automaker BMW to “buy” from “hold.” The broker said it liked the stock as BMW’s factories are equipped to manufacture a mix of drivetrains rather than focus on either electric or gasoline powered vehicles amid the challenging trading environment for automakers.
Asia-Pacific markets mostly rose overnight, while S&P 500 futures rose last night after the first trading session post-Inauguration Day ended with strong gains.
The impact that Trump’s second term in office might have on the global economy and geopolitics has been a key talking point at the World Economic Forum in Davos, Switzerland.
CNBC’s coverage of the annual forum continues, with António Guterres, secretary-general of the United Nations, due to speak at 11:30 a.m. Davos time. Spanish Prime Minister Pedro Sanchez will speak at 3:45 p.m.
CNBC guest highlights include Mark Rutte, the head of NATO, and Polish President Andrzej Duda and Sanchez.
Dick Schoof, the Netherlands’ prime minister, the United Arab Emirates’ economy and trade ministers, Saudi Arabia’s Finance Minister Mohammed Al Jadaan and Finnish President Alexander Stubb will also be speaking to CNBC at the forum on Wednesday.
There are no major data releases in Europe Wednesday, but easyJet will release its latest earnings report.