The ongoing earnings season provided a tailwind. Analysts expect overall corporate earnings in Europe to have grown at their fastest pace in three years. According to LSEG data, companies are projected to have earned an average of 10.2 percent more in the first quarter. However, this gain appears relatively modest compared to the roughly 28 percent profit growth expected for S&P 500 firms in the US. Relief was also provided by a cooling of the oil market. A barrel (159 liters) of North Sea Brent and US light crude WTI each depreciated by about one percent to 106.82 and 101.14 dollars, respectively, after prices had gained around three percent on Tuesday. Nevertheless, investors remained cautious given the fragile ceasefire in the Middle East and upcoming trade talks between the US and China.
CHINA SUMMIT: 'JUST DON'T BLOW IT'
US President Donald Trump and Chinese leader Xi Jinping will hold their first face-to-face talks in more than six months this week, aiming to stabilize relations strained by trade disputes, the conflict in Iran, and other disagreements. 'Investors are pinning their hopes on this meeting to achieve concrete progress on the Iran and tariff issues,' said Neil Wilson, strategist at Saxo Markets. Confidence was bolstered by the last-minute inclusion of Nvidia CEO Jensen Huang in the delegation. This could suggest that Nvidia's H200 chips, which have so far not been sold to China, might be on the summit agenda.
AI sector stocks were among the biggest gainers in Asia. On Chinese exchanges, investors primarily bought shares in cloud computing, chip manufacturing, and big data. Technology stocks were also in demand across Europe, with the sector index up 1.8 percent. Infineon Technologies, STMicroelectronics, and Aixtron gained between five and seven percent.
MERCK AND E.ON IMPRESS WITH FIGURES
The biggest Dax gainer was Merck, with a price jump of up to 9.4 percent. At 123.60 euros, the shares reached their highest level in nearly ten weeks. The Darmstadt-based pharmaceutical and technology group scored points with strong quarterly results and an upgraded annual forecast. Investors also snapped up E.ON shares, with the energy group's stock rising by over four percent. 'E.ON's figures for the first quarter of 2026 exceeded expectations, supported by continued investment-driven growth in the energy networks division and a solid balance sheet,' commented one trader.
In the financial sector, Allianz rose 1.3 percent after the insurer reported a 52 percent increase in quarterly net profit. ABN Amro shares climbed seven percent after beating quarterly profit estimates. RBC analysts stated that the faster implementation of the cost-cutting plan had contributed to this performance. Shares of product testing firm Intertek rose 6.8 percent in London, as the British company is expected to recommend acceptance of a 9.4 billion pound (10.8 billion euro) takeover bid from Swedish investor EQT.
(Report by Anika Ross, edited by Ralf Banser. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
