Traders work on the floor of the New York Stock Exchange during morning trading on November 17, 2025 in New York City.
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LONDON — European equities closed broadly higher on Wednesday, after days of being ravaged by lingering doubts over tech stocks.
The pan-European Stoxx 600 pared earlier losses to end the session 0.1% higher, snapping a four-day losing streak. Most major regional bourses were also in positive territory by the end of trading.
Global markets have been on edge this week with concerns over artificial intelligence-related tech stocks and valuations returning to the fore.
Stocks on Wall Street also saw a reversal of fortunes on Wednesday, with the S&P 500 rising after four consecutive days of losses. Investors are preparing themselves for Nvidia’s earnings report, due to be released after the U.S. market close, to inform the strength of the AI trade.
Analysts largely expect Nvidia to meaningfully beat Wall Street’s expectations and forecast strong sales growth, driven by demand for its AI chips and other infrastructure.
But the company has to meet lofty expectations among investors, who have taken profits from their tech holdings in recent days, reflecting heightened concerns that the AI boom has run up the valuations of Nvidia and other tech hyperscalers.
Elsewhere, Europe’s Aerospace and Defense Index hit a two-month low on Wednesday and ended the day around 1.9% in the red, as investors reacted to an Axios report that the U.S. is “secretly” working on a Ukraine-Russia peace plan.
German defense primes Rheinmetall and Renk, two of the biggest beneficiaries of the bull run on European defense stocks this year, lost 7% and 8%, respectively, over the course of Wednesday’s session.
Stock movers
Looking at individual stocks in Europe, shares of luxury giant Kering fell 4.2% after CEO Luca de Meo said returning to growth will require downsizing its store network and reducing its reliance on its Gucci brand, according to an internal memo seen by Reuters.
De Meo set an 18-month deadline to return to growth for all its brands, including Yves Saint Laurent and Bottega Veneta, as the luxury group grapples with declining sales. It comes just a month after the group agreed to sell its beauty business to L’Oreal for 4 billion euros ($4.6 billion).
British engineering firm Smiths Group shed 1% after announcing a £1 billion ($1.3 billion) share buyback program on Wednesday, and organic revenue growth of 3.5% in its fiscal first quarter.
Shares of U.K. travel retailer WH Smith were choppy on Wednesday, rebounding from a 52-week low to rise 6.8% after it was announced CEO Carl Cowling would step down from his position following the findings of an independent review into an accounting blunder that occurred earlier this year. Over the summer, the company admitted to a £30 million “overstatement” of anticipated headline trading profit in its North America division, sending shares into a nosedive.
Elsewhere, Paris-listed shares of media holding company Vivendi were 12.7% lower, after earlier plummeting as much as 20%, after French media reported a court seemed likely to rule in favor of Bolloré Group, which is disputing that it is Vivendi’s controlling shareholder. Bolloré holds close to a 30% stake in Vivendi, and a ruling in its favor would end speculation around a mandatory takeover bid from the former. A ruling is expected on Nov. 28. Vivendi didn’t immediately respond to a CNBC request to comment.
Finnish telecoms staple Nokia saw its shares fall 7%, reversing course from earlier gains after the company announced a new strategy focused on AI-enabled networks, and set a new profit target of growing annual comparable operating profit to a range of 2.7 to 3.2 billion euros by 2028. The announcement, which came ahead of the firm’s Capital Markets Day, also included news that the firm would reorganize into two units: Network Infrastructure and Mobile Infrastructure.
UK inflation cools
Data released on Wednesday morning showed the U.K.’s annual inflation rate cooled to 3.6% in October, raising the chances of a Christmas rate cut from the Bank of England. The print, which comes a week before the government’s high stakes Autumn Budget, was in line with economists’ expectations.
Sterling was last seen trading 0.6% lower against the U.S. dollar.
British pound versus U.S. dollar
Meanwhile, yields on U.K. government bonds — known as gilts — were higher across the maturity curve, with yields on the benchmark 10-year gilt adding 4 basis points. The yield on the 30-year gilt spiked 6 basis points higher by 4:41 p.m. in London (11:41 a.m. ET).
The U.K. government has the highest long-term borrowing costs of any G-7 nation, with the yield on its 30-year gilt trading well above the critical 5% threshold.
In a note sent after the inflation release, Deutsche Bank’s Chief U.K. Economist Sanjay Raja said Tuesday’s data made a rate cut from the Bank of England’s Monetary Policy Committee next month more likely.
“With the labour market softening more than expected, GDP growth weaker than the Bank of England projected, and (underlying) inflation tracking a little lower than BoE expectations, we think Governor [Andrew] Bailey — who will likely have the deciding vote for December — will feel more confident about cutting [the] Bank Rate below 4%,” he said.
— CNBC’s Pia Singh and Elsa Ohlen contributed to this market report.
