Germany stocks higher at close of trade; DAX up 0.83%

Investing.com -- European markets traded in a mixed fashion Thursday, as investors digested regional confidence data while geopolitical tensions weighed on overall market sentiment.

At 07:10 ET (12:10 GMT) Germany’s DAX index rose 0.5%, the UK’s FTSE 100 gained 0.4%, while France’s CAC 40 fell 0.1%.

Business confidence rises in Europe

Data released earlier Thursday showed rising confidence in the eurozone's second-largest economy, as France’s business climate index rose to 97 in November, an increase from the revised 93 the previous month, and above the 95 expected.

Additionally, British manufacturers expect their output to grow after a recent slump, the Confederation of British Industry said on Thursday, with is monthly industrial trends survey showing output expectations for the next three months improved to +9 in November from -1 in October, the highest since August.

Nvidia guidance weighs

A disappointing revenue forecast from AI bellwether Nvidia (NASDAQ:NVDA) weighed on European chip shares, with ASML (AS:ASML), Infineon (ETR:IFXGn) and ASM International (AS:ASMI) broadly lower.

Elsewhere, JD Sports Fashion (LON:JD) stock slid 14% after the sportswear retailer warned that its annual profit would come in at the low end of its guided range.

Soitec (EPA:SOIT) (EPA:SOIT) stock climbed 12% after the French semiconductor materials supplier delivered a reassuring set of first-half fiscal 2025 results and reiterated its full-year guidance.

Novartis (SIX:NOVN) stock rose 0.5% after the Swiss drugmaker raised its growth guidance, indicating optimism about its mid-term performance, while Zurich Insurance (SIX:ZURN) rose 2.8% after the company's upbeat three-year targets.

Halma (LON:HLMA) rose 7.5%, as the health and safety device maker reported its half-year results.

Geopolitical and monetary policy risks weigh

Beyond corporate earnings, investor attention will also be drawn to geopolitical developments and central bank policies.

ECB policy maker François Villeroy de Galhau’s remarks on tariff impacts and monetary policy flexibility offer critical insights for assessing inflationary pressures and trade risks in Europe.

Meanwhile, the U.S. manufacturing outlook and potential tariff hikes under the incoming Trump administration remain key considerations for global market sentiment.

Oil gains on escalating Russia-Ukraine tensions

Crude oil prices rose Thursday, driven by escalating geopolitical tensions stemming from the ongoing conflict between Russia and Ukraine.

By 07:10 ET, Brent crude rose by 2% to $74.23 per barrel, while U.S. crude (WTI) was up 2.1% to $70.21 per barrel.

The heightened fears of a potential escalation in hostilities overshadowed the impact of rising U.S. crude inventory levels reported in recent days.

(Navamya Acharya contributed to this article.)

Investing.com -- European markets opened on a mixed note Thursday, reflecting subdued global sentiment as investors awaited economic data from the euro zone, including French business confidence and consumer confidence flash figures.

A disappointing revenue forecast from AI bellwether Nvidia (NASDAQ:NVDA) weighed on chip shares, with ASML (AS:ASML), Infineon (ETR:IFXGn) and ASM International (AS:ASMI) broadly lower.

At 3:51 ET (8:51 GMT) Germany’s DAX index rose 0.1%, France’s CAC 40 was down 0.3%, and the UK’s FTSE 100 was unchanged on the day.

Economic data in focus: France and Eurozone updates

While the European trading session is light on major economic readings, key data points include the release of France’s business climate index for November and the Eurozone consumer confidence flash estimate.

Geopolitical and monetary policy risks weigh on sentiment

Beyond corporate earnings, investor attention will also be drawn to geopolitical developments and central bank policies. ECB policy maker François Villeroy de Galhau’s remarks on tariff impacts and monetary policy flexibility offer critical insights for assessing inflationary pressures and trade risks in Europe.

Meanwhile, the U.S. manufacturing outlook and potential tariff hikes under the incoming Trump administration remain key considerations for global market sentiment.

Oil prices rise amid escalating Russia-Ukraine tensions

Crude oil prices edged higher on Thursday, driven by escalating geopolitical tensions stemming from the ongoing conflict between Russia and Ukraine.

By 3:51 ET, Brent crude rose by 1% to $73.52 per barrel, while U.S. crude (WTI) was up 1.1% to $69.49 per barrel.

The heightened fears of a potential escalation in hostilities overshadowed the impact of rising U.S. crude inventory levels reported in recent days.

Investing.com -- Chipmaker Qualcomm (NASDAQ:QCOM) said it feels “positive” about working with President-elect Donald Trump's administration, indicating it was not worried that proposed US tariffs on China would negatively affect its business there. China accounts for nearly half of Qualcomm's revenue.

Speaking at an investor event in New York, Qualcomm executives projected $22 billion in combined revenue over the next five years from laptops, automotive products, and other markets outside its traditional smartphone dominance, representing significant growth compared to its latest fiscal year.

Alex Rogers (NYSE:ROG), head of Qualcomm's technology licensing division, emphasized the company’s positive outlook on maintaining good relations with the incoming administration.

"We expect a good relationship going forward. We're very positive on the recent pick for Commerce Secretary, so we are expecting to have a good relationship and to be engaged as we have been through this past administration," Rogers said, referring to Howard Lutnick, Trump's expected nominee.

Addressing concerns about US-China trade tensions, Qualcomm CEO Cristiano Amon downplayed the potential impact of tariffs. China accounted for 46% of Qualcomm's nearly $40 billion in revenue during its most recent fiscal year, but Amon said he did not foresee challenges in maintaining business there.

"As geopolitics started to become front and center in the US-China conversation, the Qualcomm partnerships with China actually increased, as we expanded to other industries" beyond smartphones, Amon noted.

He added that previous tariffs on Chinese goods had not harmed Qualcomm and that Chinese companies are actively purchasing its automotive chips.

Qualcomm projects $8 billion in automotive chip revenue by fiscal 2029. It expects $4 billion each from PCs and industrial chips, which help connect factory machinery to networks, and another $4 billion from internet-of-things (IoT) devices, such as wireless headphones and smart home products.

Further, the company anticipates $2 billion in revenue from augmented and mixed-reality headsets, including those made by Meta Platforms (NASDAQ:META), which already use its chips.

Analysts comment on Qualcomm’s investor event

Bernstein: “The company did not uptick their auto pipeline or targets (though it did sound like they do expect upside over time), and their Android outlook seems a bit unambitious given all their talk about edge AI potential. Nevertheless, the narrative of solid earnings power even ex-AAPL seems alive, and in general the assumptions don’t appear to require any huge stretches.”

Bank of America: “We walked away upbeat given Qualcomm’s strong market positioning and long-term revenue targets which suggest healthy growth potential across new segments. However, two questions remain: the timing of new segments ramping into revenue contribution, and the sustainability of near-term growth as recent strength has been mostly supported by one- time benefits. We maintain our Buy rating and are positive on Qualcomm’s longer-term positioning, noting that the path to achieving long term targets may not be smooth.”

Deutsche Bank (ETR:DBKGn): “We applaud QCOM’s diversification efforts, and believe the company is well positioned to deliver long-term growth outside of handsets (with Automotive targets seeming more realistic than IoT). However, we believe headwinds in the near/medium terms (Apple (NASDAQ:AAPL) share loss) will likely weigh on investors' willingness to reward the long-term diversification benefits until the net gains become more apparent.”

JPMorgan: “We expect focus from investors to be on: 1) upside and downside risks to the strong IOT targets after falling short relative to the prior outlined plan in 2021; and 2) the outlook for smartphone revenues in the intermediate term which could be a more near-term driver of the stock price, even though there remains a strong upside opportunity from a re-rating of the shares on achieving the planned diversification.”

Barclays (LON:BARC): "What will be picked at is IoT, where the CAGR is effectively flat since the last analyst day and the forecast is for >2.5x over the next 5 years. ARM penetration at 30-50% seems unlikely and the XR story has never been a reality. Net, the pivot away from handsets is expected but the 50/50 split leaves investors wondering if this is a handset downtick."

Investing.com -- Scotiabank initiated coverage on 13 software companies in a note Tuesday, reflecting a balanced view of the sector amid evolving market dynamics.

An analyst at Scotiabank (TSX:BNS) highlighted the importance of AI-driven strategies in navigating the software industry's opportunities and challenges.

The companies covered include Salesforce (NYSE:CRM), Workday (NASDAQ:WDAY), ServiceNow (NYSE:NOW), Autodesk (NASDAQ:ADSK), and Monday .com, all with Sector Outperform (SO) ratings.

For Salesforce (CRM), Scotiabank set a price target of $425, representing a 24.6% upside. The report emphasized Salesforce’s focus on its Data Cloud and the potential for AI tools like Agentforce to boost multi-cloud adoption.

Similarly, Workday (WDAY) received an SO rating with a price target of $340, reflecting confidence in its subscription revenue growth of approximately 15% over the next two years.

Here is a full list of the companies covered:

• Autodesk (ADSK): Sector Outperform; Price Target (NYSE:TGT) $360

• Asana (ASAN): Sector Perform; Price Target $15

• Salesforce (CRM): Sector Outperform; Price Target $425

• Sprinklr (CXM): Sector Perform; Price Target $7.70

• Dayforce (DAY): Sector Perform; Price Target $75

• Intuit (NASDAQ:INTU): Sector Perform; Price Target $700

• monday.com (MNDY (NASDAQ:MNDY)): Sector Outperform; Price Target $325

• ServiceNow (NOW): Sector Outperform; Price Target $1,230

• Sprout Social (NASDAQ:SPT): Sector Perform; Price Target $28

• Veeva Systems (NYSE:VEEV): Sector Perform; Price Target $235

• Workday (WDAY): Sector Outperform; Price Target $340

• Zoom Video Communications (NASDAQ:ZM): Sector Perform; Price Target $85

• ZoomInfo Technologies (ZI): Sector Perform; Price Target $10.30

The bank suggests that companies with strong AI integration strategies, such as Salesforce and ServiceNow, are well-positioned to outperform. Meanwhile, those facing macroeconomic pressures, like Sprinklr and Sprout Social, may face hurdles in achieving growth targets.

They explain that companies like Salesforce, Workday, and Monday.com have consistently outperformed benchmarks like the IGV Software (ETR:SOWGn) Index (+29% YTD).

In contrast, they note that others, such as Asana and Sprinklr, have faced YTD declines, highlighting the sector's variability. AI adoption remains pivotal, with market leaders leveraging data advantages to deliver measurable ROI through innovative solutions.

Despite challenges, including inflation and higher Treasury yields, Scotiabank remains optimistic about companies that can navigate economic pressures and capitalize on the monetization of AI. The analyst noted that “the fastest growers” and those demonstrating clear AI-driven use cases are best positioned for long-term success.

Investing.com -- European stock markets traded sharply lower Tuesday, with risk sentiment hit by heightened geopolitical tensions after Russian President Vladimir Putin issued a warning with an updated nuclear doctrine.

At 07:10 ET (12:10 GMT), Germany’s DAX index fell 0.8%, France’s CAC 40 slipped 1%, and the UK’s FTSE 100 dropped 0.3%.

Putin issues nuclear warning

Russian President Vladimir Putin issued a warning to the United States earlier Tuesday, lowering the threshold for a nuclear strike just days after the Biden administration reportedly allowed Ukraine to fire American missiles deep into Russia.

Russia would now consider a nuclear strike if it, or its ally Belarus, faced aggression "with the use of conventional weapons that created a critical threat to their sovereignty and (or) their territorial integrity", the new doctrine said.

This represented a change from the previous iteration which stated that Russia may use nuclear weapons in case of a nuclear attack by an enemy or a conventional attack that threatened the existence of the state.

Eurozone CPI confirmed at 2.0%

The eurozone’s consumer inflation reading was confirmed at 2.0% in October on an annual basis, in line with the European Central Bank's target.

Although the inflation rate remains key in determining ECB monetary policy, officials have recently expressed concerns over the damage that expected new U.S. trade tariffs would do to economic growth in the region.

"The balance of macro-risks has shifted from concerns about high inflation to fears over economic growth," ECB Vice-President Luis de Guindos told an event in Frankfurt on Monday.

"The growth outlook is clouded by uncertainty about economic policies and the geopolitical landscape, both in the euro area and globally. Trade tensions could rise further, increasing the risk of tail events materialising."

In the U.S., housing data slated for release later in the day is unlikely to shift market dynamics significantly, with attention instead turning to a series of speeches from key central bankers.

Adding to the day’s narrative, Bank of England Governor Andrew Bailey and other officials have appeared before Parliament, while ECB policymaker Frank Elderson and Riksbank’s First Deputy Governor Anna Breman are also in the spotlight.

Thyssenkrupp predicts turnaround

Thyssenkrupp (ETR:TKAG) stock soared 8.5% despite reporting a €1 billion impairment on its Steel Europe division.

The German industrial giant also announced a net loss of €1.5 billion for the fiscal year, but crucially expects to swing to profit in the current fiscal year, indicating that a turnaround plan that includes restructuring its ailing steel division is making progress.

Imperial Brands (OTC:IMBBY) stock rose 2.3% after the tobacco giant delivered an upbeat report, posting a 4.6% rise in adjusted operating profit for the fiscal year ending Sept. 30.

This growth was driven by improved profitability in its tobacco and next-generation products businesses, alongside strong performance in its distribution arm.

Crude oil prices dip

Crude oil prices weakened Tuesday, with gains from the previous session tempered as traders assessed the global supply outlook.

By 07:10 ET, Brent crude fell 0.5% to $72.94 per barrel, while U.S. crude (WTI) fell 0.6% to $68.76 per barrel.

The initial boost on Monday, driven by news of a production halt at Norway’s Johan Sverdrup field due to an onshore power outage, waned, as traders fretted about the unstable situation in eastern Europe.

(Navamya Archarya contributed to this article.)