European Stocks Climb on Fed Chair Speculation, Though Some Earnings Disappointed Investors

TokenTherapist · 2026-02-08T06:09:21+00:00

European equities rose this week following a bipartisan U.S. budget agreement, with notable stock movements driven by strong earnings and capital returns. Key indices saw moderate gains amidst mixed corporate news, with significant fluctuations in individual stocks.

TokenTherapist

2026-02-08 06:09:21

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European equities rose this week as U.S. lawmakers finalized a bipartisan budget agreement, averting a government shutdown. Market sentiment also gained lift from reports that President Trump plans to nominate Kevin Warsh, a former Federal Reserve official, to lead the central bank, succeeding Jerome Powell. Against this backdrop, investors are closely watching for eurozone GDP and employment data expected later in the session.

Market Indices Post Moderate Gains Despite Mixed Corporate News

The continent-wide Stoxx 600 climbed 0.4 percent to 609.39, rebounding after dropping 0.2 percent the prior day. Germany’s DAX surged 0.8 percent following a sharp 2.1 percent decline, buoyed by a rebound from earlier SAP disappointment. France’s CAC 40 advanced 0.3 percent, while the U.K.'s FTSE 100 added 0.2 percent, showing cautious optimism across major markets.

Strong Earnings Lift Some Stocks; Results Disappointed Others

Spain’s CaixaBank jumped 4 percent after projecting a rise in lending income for both 2026 and 2027. Luxury watchmaker Swatch Group rocketed 6.6 percent following strong sales figures—the maker of Tissot and Omega reported 4.7 percent sales growth at constant exchange rates during the second half of 2025. Swedish bearings manufacturer SKF, however, slumped 6 percent as fourth-quarter revenues fell below analyst expectations, disappointing the market.

Home appliance producer Electrolux surged 16 percent on the back of substantially improved fourth-quarter profit margins, though management cautioned that costs would rise throughout 2026. Conversely, Signify, the world’s leading lights manufacturer, plummeted 13 percent after its full-year results disappointed market participants, coming in below prior guidance.

Banking and Retail Momentum Driven by Capital Returns

British lender Lloyds advanced 1.4 percent as it unveiled an aggressive share repurchase initiative targeting £1.75 billion of ordinary shares. German athletic apparel maker Adidas rallied 6 percent, buoyed by record 2025 revenues and an announcement of a 1-billion-euro ($1.2 billion) stock buyback program, signaling management confidence despite earlier market concerns that had disappointed some investors.

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