Sentiment shifts in European markets as traders go from tariffs to earnings

LONDON — European stocks are expected to open flat to lower on Thursday ahead of a raft of earnings reports from the region.

The U.K.'s FTSE index and France's CAC 40 are seen opening flat while Germany's DAX is expected to open 0.13% lower and Italy's FTSE MIB down 0.23%, according to data from IG.

It's a busy day for earnings in Europe with Deutsche Telekom, Schneider Electric, Allianz, Rolls-Royce, AXA, Munich Re, Engie, Eni, Saint-Gobain, London Stock Exchange Group, Stellantis and Covestro among the firms reporting on Thursday.

German sportswear giant Puma published its full-year earnings for 2025 on Thursday morning, reporting an 13.1% decline that it attributed to its strategy "reset," which was completed last year.

The firm reported an operating loss of 357.2 million euros, down from an operating profit of 548.7 million the previous year. The loss was greater than expected, according to an analyst consensus compiled by LSEG.

Puma said sales declined notably in the second half of the year, while its profit margin fell by 260 basis points to 45%. It proposed canceling dividend payouts for 2025, and said it expected to report an operating loss of between 50 million and 150 million euros this year.

Meanwhile, Britain's Rolls-Royce said Thursday it expects profits of over £4 billion ($5.42 billion) in 2026, as it reported a larger-than-expected profit jump of 40% for 2025.

The more negative start to the trading session expected in Europe today comes after generally positive sentiment this week, despite uncertainty over global trade after President Donald Trump's tariff announcements last weekend.

Still, markets have been relieved that a universal 10% tariff came into effect rather than the threatened higher 15% rate, and attention has turned to earnings reports.

U.S. stock futures fell Wednesday night as investors digested the latest earnings update from Nvidia, with the chip giant posting a fourth-quarter earnings and revenue beat Wednesday.