Thursday's session is proving eventful on the data front, with investors also keeping a wary eye on diplomatic developments, notably the Greenland and Venezuela issues.

Eurozone consumer confidence came in better than expected in December, but remains in negative territory: at -13.1 versus -14.6 expected, after -14.2 in November.

The eurozone unemployment rate stood at 6.3% of the active population in November, down from 6.4% recorded the previous month. Meanwhile, industrial producer prices in November rose by 0.5% across the eurozone.

Attention will focus in the afternoon on weekly jobless claims across the Atlantic.

"Corporate earnings should continue to support markets, but high valuation levels and the AI-driven concentration call for caution and diversification. Finally, geopolitical risks, especially with the upcoming U.S. midterm elections, remain a source of uncertainty not to be overlooked," says Grégoire Kounowski, Investment Advisor at Norman K.

In Europe, Tesco (-5.44% at 428 pence) is taking a heavy hit in London after posting sales below forecasts for the third quarter and the Christmas period, even though the group raised the upper end of its adjusted operating profit guidance for fiscal 2025-2026.

In Paris, Sodexo (-3.55% at 42.44 euros) is under pressure, penalized by contract losses in North America and the depreciation of the dollar. The contract catering specialist reported a 2.2% drop in revenue to 6.26 billion euros. Activity in North America, which accounts for just under half of its total sales, declined by 6.5%.

Meanwhile, BNP Paribas (+2.32% at 81.55 euros) tops the CAC 40 leaderboard, buoyed by an upgrade from UBS, which moved the stock to Buy, raising its price target from 77.4 to 103 euros. The bank also announced it has been granted permission to appeal its conviction in the Sudanese case, after being found guilty at first instance following a court ruling delivered last October.

By midday, the euro is edging up 0.02% to 1.1679 dollars.