European stock markets showed mixed activity on Wednesday as investors awaited the quarterly earnings of semiconductor giant Nvidia, a key player in the global tech industry and artificial intelligence sector.
Nvidia, traded on the Nasdaq, plays an influential role due to its clients including Microsoft, Google, Meta, and Amazon. Its rapid rise has made it the largest stock in the S&P 500, greatly impacting U.S. market movements. The company’s earnings report is due after U.S. markets close on Wednesday.
France’s CAC 40 bounced back 0.44% after a steep 1.6% drop, driven by political concerns surrounding Prime Minister François Bayrou’s upcoming confidence vote, which raises uncertainty over passing the 2026 budget.
The wider Stoxx 600 index was slightly up 0.12% ahead of midday in London, marking a strong month overall with gains near 1.5%, the best since May’s rally.
Healthcare and household goods sectors saw gains near 0.9%, while banks weakened, dropping about 1.3%. Commerzbank shares fell 3.2% after Goldman Sachs downgraded the bank citing prior share price gains.
U.S. futures were steady despite President Donald Trump’s unusual decision to remove Federal Reserve Governor Lisa Cook, a move introducing added uncertainty.
Asia-Pacific markets were mixed; Chinese industrial profits declined 1.5% year-on-year in July, indicating some recovery from earlier deeper losses. Indian markets were closed for a holiday amid tensions as the U.S. implemented 50% tariffs on Indian exports, heightening trade friction.
Global investors remain cautious with political and economic developments, looking to Nvidia’s results for insights into the health of the tech sector and the unfolding AI boom.