European equity markets edged down on Thursday as investors absorbed another busy slate of corporate earnings alongside heightened geopolitical uncertainty. At 03:02 ET (08:02 GMT), Germany's DAX was down 0.3%, France's CAC 40 slipped 0.2% and the U.K.'s FTSE 100 fell 0.2%.
Corporate earnings continue to shape the trading day
It was another active day for company reports in a quarter that has seen roughly 60% of European firms beat earnings expectations to date. The results on Thursday illustrated the uneven dynamics across sectors and regions.
Pernod Ricard (EPA:PERP) recorded a 5% decrease in second-quarter like-for-like sales. The French spirits group cited weak consumer demand and destocking in the United States and China as ongoing headwinds. The decline was smaller than the prior quarter's 7.6% contraction, with Pernod Ricard noting improving trends in India and in global travel retail.
Mining giant Rio Tinto (LON:RIO) reported flat underlying earnings for 2025. Higher copper and aluminium volumes together with tighter cost controls helped offset pressure from weaker iron ore prices for the world's largest iron ore producer.
Renault (EPA:RENA) posted a net loss of 10.93 billion for 2025, following a 9.3 billion non-cash charge tied to an accounting change for its stake in Nissan. The automaker's underlying operating performance held up and revenue rose 3% despite the accounting-related loss.
Nestle (SIX:NESN) reported a 17% decline in annual net profit for 2025 and noted a marked squeeze on margins. The company's results reflected restructuring charges, asset writedowns and the impact of a December infant formula recall.
Zurich Insurance (SIX:ZURN) delivered a record operating profit of $8.9 billion for 2025, a 14% increase from the prior year. The insurer attributed the performance to a sharp improvement in its property and casualty underwriting result and growth across all three business segments.
Airbus Group (EPA:AIR) registered a slightly stronger fourth-quarter profit, while warning of a softer-than-anticipated deliveries outlook for 2026 amid an engine shortage.
French-Dutch carrier Air France KLM (EPA:AIRF) posted its first operating result above 2 billion, driven by revenue growth and lower fuel costs that helped offset rising airport charges and labor expenses.
German packaging equipment maker Krones (ETR:KRNG) reported fourth-quarter earnings that beat analyst expectations on profitability while slightly missing revenue projections, continuing its profitable growth trajectory despite difficult macroeconomic conditions.
Geopolitical tensions remain a near-term market driver
Geopolitical developments added a layer of risk. Ukrainian and Russian negotiators held their third U.S.-mediated meeting of 2026 this week without any breakthrough on key issues such as territory. Moscow is seeking Kyiv's withdrawal from the roughly 20% of the eastern Donetsk region that Russia does not control, a demand Ukraine rejects.
Separately, nuclear talks between the U.S. and Iran in Geneva produced little progress, with U.S. Vice President JD Vance saying Washington was weighing whether to continue diplomatic engagement with Tehran or pursue "another option". Satellite imagery reviewed by experts indicated Iran had constructed a concrete shield over a facility at a sensitive military site and covered it with soil, advancing work at a location reportedly bombed by Israel in 2024.
Oil moves higher on supply concerns
Oil prices climbed on Thursday amid reports of elevated military activity in the Middle East and concerns about possible disruptions to flows from the region. Brent futures rose 1% to $71.04 a barrel while U.S. West Texas Intermediate futures gained 1.1% to $65.75 a barrel.
Both benchmarks had settled more than 4% higher on Wednesday, marking their strongest settlements since January 30. Media accounts of increased military and naval activity in the Persian Gulf reinforced perceptions of supply vulnerability, while hopes for any near-term easing of sanctions on Russian energy faded after Russia-Ukraine talks produced no breakthrough.
Supporting the market, industry data from the American Petroleum Institute showed U.S. crude stocks fell by about 609,000 barrels in the week to Feb. 13. Official figures from the Energy Information Administration were scheduled for release later on Thursday.
What to watch next
Investors will continue to parse corporate updates for signals on demand, margins and capital allocation, while watching geopolitics and official supply data for indications of near-term market stress. The mix of results across insurers, industrials, food companies and automakers highlights looming divergence across sectors.