26th Feb 2026 12:11
(Alliance News) - Well-received corporate earnings supported European equities on Thursday, though shares in New York are set to open lower despite an Nvidia earnings beat.
The FTSE 100 index was up 11.64 points, 0.1%, at 10,818.05. The FTSE 250 added 15.05 points, 0.1%, at 23,651.94, and the AIM all-share climbed just 0.87 of a point, 0.1%, at 817.66.
The Cboe UK 100 was up 0.1% at 1,076.62, the Cboe UK 250 added 0.1% at 20,903.79, and the Cboe small companies added 0.7% at 18,546.29.
The CAC 40 in Paris added 0.9% while the DAX 40 in Frankfurt rose 0.4%.
The yield on the US 10-year Treasury was steady at 4.05%. The 30-year yield widened to 4.70% from 4.69%.
In New York, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite are all called down 0.1%. Nvidia was 0.8% higher in pre-market dealings, however.
Nvidia hailed an "outstanding" quarter, and predicted sequential revenue growth throughout 2026 reflecting booming AI demand.
Chief Executive Officer Jensen Huang commented: "Computing demand is growing exponentially - the agentic AI inflection point has arrived."
The Santa Clara, California-based chip maker reported net income of USD42.96 billion in its fourth quarter ended January 25, up 94% from USD22.09 billion a year ago. Diluted earnings per share was USD1.76, up 98% from USD0.89.
Revenue totalled USD68.13 billion, up 73% from USD39.33 billion last year, and ahead of the USD66.21 billion LSEG consensus.
Wedbush analysts commented: "Nvidia had a gold medal performance and physical AI only represents roughly 3% of revenues which speaks to another massive opportunity around autonomous and robotics on the horizon. Watching Nvidia today is like watching Michael Jordan in his first few years for the Chicago Bulls...just the beginning of this transformational superstar narrative playing out for the tech world."
Swissquote analyst Ipek Ozkardeskaya noted Nvidia impressed, but was unable to markedly lift wider market sentiment.
"So, while Nvidia delivered another blockbuster quarter, it doesn't fully revive global risk appetite. SoftBank rebounded almost 4% in Japan this morning, but Nasdaq futures are pointing lower, trailing major US and European peers. Nvidia can keep its own head above water, but it may not drive global risk appetite alone, anymore," the analyst said.
Nvidia has had a rip-roaring rise on the stock market. One firm in London which can boast the same feat, albeit with a much smaller market capitalisation, is Rolls-Royce.
AJ Bell analyst Dan Coatsworth commented: "Better than expected results from Rolls-Royce put a new rocket under its share price, taking it to a new all-time high. This is one of the most impressive business turnarounds in decades. Not simply fixing a few broken doors, Rolls-Royce has sorted out its problems and then taken the business to another level. It is rare to pull off such a stunt so smoothly and without bumps in the road."
Rolls-Royce shares surged 5.5% as it reported stronger annual results, raised its dividend, announced a buyback and lifted its outlook.
At the other end of London's large-cap index, Hikma shares slumped 17%. It plummeted as it withdrew mid-term guidance and delivered a softer than hoped outlook for the current financial year.
The London-based pharmaceutical maker sees 2026 revenue growth in the 2% to 4% range, slowing from 7% in 2025.
It predicts core operating profit in the range of USD720 million to USD770 million, below company compiled consensus of USD784 million.
In addition, Hikma said it was withdrawing medium-term group guidance and the Injectables medium-term margin guidance previously set out.
This follows a strategic review "of the plans and projections for the group, and for the Injectables business in particular," Hikma said.
Ocado shares fell 7.4%. It said it is cutting 1,000 jobs as it scales back research & development investment and simplifies its operating model.
"Following a period of rapid growth and capital investment in our technology, we believe now is the appropriate time to realign and restructure our commercial, support and R&D functions," the Hatfield, Hertfordshire-based grocer and warehouse technology firm said in a statement.
Elsewhere in London, National Express owner Mobico raced 34% higher as it predicted GBP100 million in savings for 2026.
It sees adjusted operating profit coming in at GBP195 million to GBP210 million this year. For 2025, it reported Thursday that adjusted operating profit grew to GBP198.0 million from GBP181.1 million.
"Together with our other initiatives, we expect to deliver GBP100 million of annualised cost savings for the group by the end of 2026," Executive Chair Phil White said.
The pound traded at USD1.3537, where it stood at the time of the London equities close on Wednesday. The euro was largely flat at USD1.1802 from USD1.1804. Against the yen, the dollar bought JPY156.03, down from JPY156.39.
"Improved sentiment has weighed on the dollar over the past 24 hours, with only the yen taking a worse beating in G10 yesterday (more in the JPY section below). Oil price moderation is also playing a role, with markets seeing no reason to price in geopolitical escalation," analysts at ING commented.
"Overall, we could see some stabilisation in the dollar today, though some downside risks remain as the positive spillover from Nvidia's earnings may keep markets tilted away from defensive currencies a little longer."
Still to come on Thursday is the latest US jobless claims reading at 1330 GMT.
By Eric Cunha, Alliance News news editor
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Rolls-RoyceHikma PharmaceuticalsOcadoMobico Group