BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - The major European markets closed on a weak note on Wednesday with investors mostly making cautious moves, reacting to the most recent developments on geopolitical and trade fronts, and awaiting the Federal Reserve's policy announcement and the Fed Chair Jerome Powell's comments.
Investors assessed the EU-India trade deal, and weighed European Central Bank official Martin Kocher's comments that the central bank might start cutting rates if Euro surges higher.
Mining stocks gained some ground as gold and sliver rose to fresh record highs. Some buying was seen in the energy sector as well.
The pan European Stoxx 600 fell 0.68%. Germany's DAX closed 1.38% down, while the U.K.'s FTSE and Germany's DAX ended down by 0.47% and 0.53%, respectively. Switzerland's SMI finished with a loss of 1.46%.
Other markets in Europe closed mixed. Belgium, Denmark, Finland, Netherlands, Spain and Sweden ended weak.
Czech Republic, Greece, Iceland, Norway, Poland, Russia and Turkiye closed higher, while Austria, Ireland and Portugal ended flat.
In the UK market, Endeavour Mining and Metlen Energy & Metals both climbed 4.3%. Scottish Mortgage gained 2.1%.
Scottish Mortgage, Persimmon, Centrica, DCC, Coca-Cola Europacific Partners, Bunzl, Legal & General, Kingfisher, Ashtead Group and Prudential gained 1.5% - 2%.
Burberry Group closed lower by 4.7%. Smiths Group ended 3.3% down. AstraZeneca, Rolls-Royce Holdings, Airtel Africa, Rentokil Initial, GSK, Experian, Halma, JD Sports Fashion, Hiscox, Melrose Industries and Barclays lost 2% -3%.
In the German market, Daimler Truck Holding, Infineon, Brennta and Vonovia gained 2% - 3.5%. Deutsche Telekom, E.ON, Volkswagen, Mercedes-Benz, Deutsche Boerse and Allianz posted moderate gains.
Fresenius lost 3.7%, Bayer ended down by about 3%, and MTU Aero Engies drifted down 2.5%. Deutsche Bank, Gea Group, Heidelberg Materials, Qiagen, Adidas and Siemens Healthineers also declined sharply.
In the French market, STMicroElectronics rallied more than 3.5%. Edenred, Pernod Ricard, TotalEnergies, Legrand, ArcelorMittal, Orange and Vinci also closed notably higher.
LVMH tumbled nearly 7%, weighed down by weaker margins and the company's cautious outlook for the current year, after posting a 4.6% drop in revenue and a 9% decline in profit in 2025.
Kering, Hermes International, Sanofi, Capgemini, Airbus and Safran lost 2 to 3.1%. Accor, EssilorLuxottica and Societe Generale also ended notably lower.
On the economic front, survey data published jointly by NIQ/GfK and the Nuremberg Institute for Market Decisions showed German consumer confidence is set to improve in February, driven by strong rebounds in income expectations and willingness to buy.
The forward-looking consumer climate indicator rose more-than-expected to -24.1 from -26.9 in January. The score was expected to climb to -25.5 in February.
Economic and income expectations as well as the willingness to buy improved, while the willingness to save was mostly stable in January.
The willingness to save remained at a very high level in January and had no significant influence on the monthly confidence indicator, the survey showed. The corresponding index dropped to 17.9 from 18.7.
Although the consumer confidence index recovered notably from the strong losses, the indicator remained low, GfK said.
Consumers assess that the German economy is returning to a moderate growth path after three years of recession or stagnation. Economic experts currently expect the largest euro area economy to grow by around one percent in 2026.
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