BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks turned in a mixed performance on Wednesday as concerns about inflation and interest rates resurfaced following a jump in oil prices amid an escalation in tensions in the Middle East after joint attacks by Saudi Arabi and the United States in Iraq, targeting Iran-backed militias.
In addition to reacting to a spate of corporate earnings announcements, investors also looked ahead to the Federal Reserve's monetary policy announcement.
U.S. Central Command said in a post on X that Iran launched multiple ballistic missiles in an attempted surprise attack on U.S. forces based in the Middle East on Tuesday.
In a subsequent statement, Centcom said U.S. and Saudi Arabian forces conducted precision strikes in Iraq against Iran-aligned terrorists that the Islamic Revolutionary Guard Corps directed to attack U.S. forces and Saudi energy infrastructure.
In response to the surprise attacks on U.S. forces in Jordan, President Donald Trump told a Fox News reporter the U.S. will be hitting Iran hard, adding, 'They're going to get a beating.'
The pan European Stoxx 600 ended 0.29% down. Germany's DAX closed flat and France's CAC 40 settled lower by 0.6%, while the UK's FTSE 100 moved up 0.34%. Switzerland's SMI closed down by 0.58%.
Among other markets in Europe, Austria, Belgium, Finland, Ireland, Portugal, Spain, Sweden and Türkiye closed weak.
Czech Republic, Denmark, Greece, Iceland, Norway, Poland and Russia ended higher, while Netherlands settled flat.
In the UK market, The Sage Group and Weir Group both jumped by about 8.75%. Burberry Group climbed 4.7%.
Reckitt Benckiser moved up 4.3% after delivering a 'strong' second quarter and maintaining its annual forecast.
Standard Chartered gained nearly 3% after announcing higher quarterly profit and a $1bn share buyback. In addition, the Board announced an interim ordinary dividend of 20.4 cents per share, up 66% from last year.
BP. Experian, Rentokil Initial, Glencore, Shell, Associated British Foods, Tesco, Croda International, Prudential, Metlen Energy & Metals, Rio Tinto and British American Tobacco gained 1.5%-3.4%.
Aberdeen Group dropped 4.3%. Diploma, IMI, Halma, Fresnillo, Endeavour Mining, IAG, Rolls-Royce Holdings, Segro, Investec, Barclays, Airtel Africa and Entain also declined sharply.
In the German market, Infineon fell nearly 6%. Vonovia, Commerzbank, Siemens Energy, Continental, Hochtief and E.ON lost 1%-2%.
Rheinmetall moved up nearly 7%. Siemens Healthineers gained 4.5%. SAP, Volkswagen, Deutsche Boerse, Brenntag, Bayer, Beiersdorf, Zalando, BMW and Porsche Automobil Holding gained 1%-2%.
Deutsche Bank moved higher thanks to the lender reporting a record second-quarter profit. Despite coming off early highs, the stock remained about 3.5% up a little while ago. The bank reported net income of $1.91 billion in its second quarter. Earnings per share came in at 66 cents. The bank posted revenue of $17.53 billion in the period. Its revenue net of interest expense was $9.86 billion, which topped forecasts.
BASF climbed nearly 4% after reporting significantly higher profit in its second quarter, benefited mainly by a sale gain, as well as stronger prices and higher volumes. The chemicals major maintained the recently upgraded fiscal 2026 outlook. Separately, the company announced up to 1.0 billion euros share buyback program, which is scheduled to start in August..
In the French market, Hermes International tanked 11%. The luxury apparel, accessories, and other products company reported a fall in net earnings for the first half of fiscal 2026. For the six-month period, the company reported net income of EUR 2.238 billion, or EUR 21.32 per share, compared with EUR 2.246 billion, or EUR 21.39 per share, in the same period last year.
STMicroelectronics, EssilorLuxottica, ArcelorMittal, Carrefour, Schneider Electric, Credit Agricole, Thales, AXA, Veolia Environment and BNP Paribas declined sharply.
Danone dropped by nearly 2.5% despite posting solid first-half results. The company reported net income of EUR 1.175 billion, or EUR 1.81 per share, compared with EUR 1.040 billion, or EUR 1.61 per share, in the same period last year.
Kering soared nearly 17% to its highest level since early February after Gucci delivered better-than-expected sales.
Bureau Veritas climbed 7.7%. Capgemini, Teleperformance, Stellantis, Renault, TotalEnergies, Edenred, Orange and Publicis Group also posted strong gains.
In economic news, data from Destatis showed Germany's import prices rose 6.1% yoy in June, easing from May's 6.8%, which had marked the strongest gain since December 2022. On monthly basis, import prices slipped 0.7%, reversing May's 0.7% rise and signaling the first monthly drop since December.
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