The headquarters of Deutsche Bank AG in Frankfurt, Germany, on May 31, 2022.
This is CNBC's live blog covering European markets.
European markets traded flat Wednesday as investors in the region focused on corporate reports and U.S. Treasury yields.
The pan-European Stoxx 600 index traded around the flatline Wednesday morning.
There were earnings aplenty on Wednesday, with Deutsche Bank beating expectation in its return to profit in the three months to September. Shares of the German lender were trading 2.5% lower in early trading. Meanwhile, Roche's shares were up 0.7%, Heineken up 2.3%, Volvo Cars up 1%, Swedbank up 6% and AkzoNobel down 4.4% after the firms reported earnings earlier.
The 10-year U.S. Treasury yield has been on an upturn of late, briefly topping 4.2% on Tuesday and keeping stocks under pressure. U.S. stock futures fell overnight after the S&P 500 posted its first back-to-back loss since early September. Asia-Pacific markets saw more positive trade Wednesday.
Heineken shares edge higher after third-quarter results
Heineken shares rose Wednesday after the Dutch brewer reported a rise in organic net revenue and reiterated its outlook for the year.
Money Report
Shares were 2% higher as of 9:56 a.m. London time.
Beer volumes were up 0.7% in the quarter and net revenue rose 3.3% on an organic basis, the firm said in a trading update. It added that it continues to expect an increase in adjusted operating profit in the range of 4% to 8% on an organic basis for the full year.
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"Our business continues to deliver in line with our plan in aggregate, despite some markets navigating challenging consumer and industry trends," CEO Dolf van den Brink said in the Wednesday statement.
— April Roach
Volvo Cars cuts retail sales guidance after quarterly profit hike
Sweden's Volvo Cars cut its guidance for retail sales this year, even as third-quarter profit picked up on an annual basis.
The automaker, majority-owned by China's Geely, said on Wednesday it now anticipates full-year sales growth of 7-8% this year, lower than its previous outlook of 12-15%, "given the accelerating weakness in the market and our focus on safeguarding value over volume."
The company's operating income hit 5.8 billion Swedish kroner ($549 million) in the third quarter, up 30% year on year. Revenue was up by an annual 1% to 92.8 billion Swedish kroner.
"Our industry is facing an increasingly volatile environment. Macroeconomic headwinds are intensifying, as is geopolitical complexity," Volvo Cars CEO James Rowan said in a statement, noting that "continued cost actions remain necessary going forward, and we are determined to deliver on our ambitions."
— Ruxandra Iordache
Swedbank net profit rises in the third quarter
Swedbank reported a rise in third-quarter net profit on Wednesday to 9.4 billion Swedish kroner ($890 million), up 9% from the previous quarter.
Income increased partly due to one-off effects, the bank said in its earnings report, while costs decreased seasonally and "as a consequence of the temporary hiring freeze and strict cost control." The cost to income ratio, a measure of banks' profitability comparing operating costs to income, fell to 0.31.
"It's a strong result further strengthened by both one-offs and timing effects and that means we can deliver return on equity of 18.4%," CEO Jens Henriksson told CNBC Wednesday.
— Holly Ellyatt
Dulux maker AkzoNobel misses revenue expectations
Dulux paints maker AkzoNobel reported a 3% drop in its third-quarter revenue on Wednesday, below expectations, hit by weaker demand in China and adverse currency effects.
The Dutch maker of paints and coatings said its quarterly revenue fell to 2.67 billion euros ($2.88 billion) from 2.74 billion a year earlier. That fell short of the 2.76 billion euros expected by analysts in a company-provided consensus.
The Amsterdam-listed company also said it expected its adjusted core earnings (EBITDA) to reach 1.5 billion euros this year, confirming its earlier forecast for it to be at the low end of a 1.5 billion to 1.65 billion euro range.
— Reuters
Deutsche Bank swings back to profit in the third quarter
Deutsche Bank on Wednesday beat expectation in its return to profit in the three months to September, after snapping its 15-quarter profit streak in the second quarter.
Net profit attributable to shareholders came in at 1.461 billion euros ($1.58 billion) over the third quarter, compared with the 1.047 billion euros anticipated in a LSEG poll of analysts.
Revenue hit 7.5 billion euros, against a LSEG analyst forecast of 7.338 billion euros.
Read more here: Deutsche Bank swings back to profit in the third quarter, beating expectations
— Ruxandra Iordache
Oil prices are reclaiming ground after last week's sell-off
Crude oil futures have gained about 4% this week, after China cut its benchmark lending rates and geopolitical tensions in the Middle East remain volatile.
U.S. crude oil gained $1.53 to settle at $72.09 per barrel Tuesday afternoon, while global benchmark Brent added $1.75 to close at $76.04 per barrel. The rally extended Monday's gains of more than 1%.
Though prices are rising this week, the supply-and-demand outlook looks bearish, even as Israel is still expected to retaliate against Iran for the Islamic Republic's Oct. 1 ballistic missile attack.
U.S. crude oil sold off more than 8% last week as traders view an oil disruption in the Middle East due to Iran-Israel tensions as increasingly unlikely. A weak demand picture also weighed on prices, with consumption in China softening as more OPEC supply is expected to come online in December.
— Spencer Kimball
IMF says global fight against inflation is ‘almost won’ but highlights increasing risks
The International Monetary Fund lowered its global headline inflation projection 3.5% on an annual basis by the end of 2025, from an average 5.8% in 2024.
"The global battle against inflation is almost won," the agency said in its World Economic Outlook released Tuesday.
However, "Despite the good news on inflation, downside risks are increasing and now dominate the outlook," said IMF chief economist Pierre-Olivier Gourinchas. Now that inflation is headed in the right direction, global policymakers face a new challenge stemming from the rate of growth in the world economy, the IMF warned.
The fund kept its global growth estimate at 3.2% for 2024 and 2025, which it called "stable yet underwhelming."
The full story can be found here.
— Hakyung Kim
CNBC Pro: As gold hits another record high, the pros reveal their outlook for the precious metal
Macroeconomic uncertainties, mounting geopolitical tensions and a desire to hedge against inflation have given gold — the classic "safe haven" asset — a blistering rally.
Spot gold prices have soared above $2,700 an ounce, rallying for the fifth day on Monday to hit another record high of over $2,733 an ounce. Year-to-date, spot gold is up over 30%.
And Michael Widmer, head of metals research at Bank of America, says it has further to go.
'If gold doesn't rally now, then I'm not sure when it ever will. Actually, I think the fundamental backdrop looks actually quite good," he told CNBC's "Squawk Box Europe" on Monday.
Others like John Reade, senior markets strategist at the World Gold Council, urge some caution.
CNBC Pro subscribers can discover more here.
— Amala Balakrishner
Politics can 'make or break' certain parts of the market, says Bank of America
The U.S. election is about two weeks away, and who winds up in the White House and in Congress could have an effect on key corners of the stock market, according to Bank of America.
"Profits accelerating are far more important than who is sitting in the Oval Office. But politics can make or break sub-sectors," the firm wrote in a Friday note.
With this in mind and with volatility expected to rise as the Nov. 5 election nears, Bank of America strategists say it is now a stock picker's market.
"Now is not the time to close one's eyes and buy the index," the investment bank said.
To read more about Bank of America's assessment of the election on the stock market, click here.
— Hakyung Kim
CNBC Pro: Scotiabank says its 3 biotech 'top pick' stocks have more than 100% upside potential
Scotiabank has highlighted three biotechnology companies as their "top picks," each with the potential to more than double in stock price over the next 12 months.
The bank believes interest rate cuts are a notable tailwind that will likely reignite wider investment interest in the biotech sector.
CNBC Pro subscribers can read more here.
— Ganesh Rao
European markets: Here are the opening calls
European markets are expected to open in flat to mixed territory Wednesday.
The U.K.'s FTSE 100 index is expected to open 3 points lower at 8,304, Germany's DAX up 8 points at 19,440, France's CAC down 9 points at 7,529 and Italy's FTSE MIB down 47 points at 34,490, according to data from IG.
It's a busy day for earnings Wednesday, with Deutsche Bank, Roche, Heineken, Volvo, Swedbank and AkzoNobel among the companies reporting. On the data front, Europe consumer confidence figures are due.
— Holly Ellyatt
