Investors remain focused on Middle Eastern tensions ahead of a highly anticipated meeting between Donald Trump and Xi Jinping in China. The cautious sentiment is further fueled by disappointing inflation data out of the United States.

'The worst-case scenario, a breakdown of the 'ceasefire', would lead to a protracted conflict, which would heighten investor risk aversion. Indeed, a prolonged energy shock acts as a tax on demand and erodes corporate margins', argues Loic Bécue, fund manager at Sienna IM.

Stocks in motion

Alstom rose sharply (+3.12%) following the release of its quarterly results. Supported by strong global demand for trains and metros, the group saw its annual net profit double as revenue grew. However, its operating margin slipped to 6.1%, according to annual results covering the April 2025 to March 2026 fiscal year.

Eurazeo is also gaining ground (+1.40%) after the investment firm reported a 7% year-on-year increase in assets under management to 39.2 billion euros at the end of March.

Vallourec is among the top performers (+7.54%), despite a 7% decline in first-quarter revenue, which came in at 975 million dollars (approximately 830 million euros).

Conversely, Eiffage is losing ground within the CAC 40 (-2.40%) following its quarterly earnings release. Elsewhere in Europe, Merck KGaA (+8.50%) is performing strongly after raising its full-year adjusted operating profit guidance.

TUI is also advancing (+1.63%) after the group reported a quarterly adjusted operating loss that was narrower than market expectations.

Adecco is tumbling by more than 10%, weighed down by a gross margin that missed expectations, despite organic revenue growth exceeding analyst forecasts.

Finally, ABN Amro has gained 7% after posting a 12% year-on-year increase in quarterly profit, beating market estimates.

Economic data on the agenda

Industrial production in the eurozone grew less than expected in March, according to data released Wednesday by Eurostat, the European Union's statistical office. Output rose by 0.2%, while economists polled by Reuters had forecast a 0.3% increase, following a 0.2% rise in February (revised down from an initial estimate of +0.4%).

Consumer prices in France rose by 2.2% in April 2026, a sharp acceleration from +1.7% in March, according to Insee, confirming its flash estimate published on April 30 in a second reading.

Finally, market participants will look to U.S. producer price data at 2:30 PM, expected to rise by 0.5%, as well as U.S. crude oil inventory levels.

On the foreign exchange market, the euro is down 0.25% at 1.1706 dollars.