26th Feb 2026 09:21
(Alliance News) - European stocks were mixed in early dealings on Thursday, with markets awaiting a fresh set of catalysts after Nvidia beat on earnings overnight.
A scarcity of data put the focus back on corporate earnings in Europe. Numbers from Rolls-Royce impressed in London, Engie was on the move higher in Paris though Allianz fell in Frankfurt.
The FTSE 100 index was up 12.13 points, 0.1%, at 10,818.54 on Thursday morning.
The FTSE 250 fell just 5.72 points at 23,631.17, and the AIM all-share fell by even less. It was down just 0.0099 of a point at 816.78.
The Cboe UK 100 was up 0.1% at 1,076.98, the Cboe UK 250 fell 0.1% at 20,868.83, and the Cboe small companies added 0.3% at 18,469.71.
The CAC 40 in Paris added 0.4% though the DAX 40 in Frankfurt lost 0.2%.
Keeping a lid on its progress was the mining sector and lender HSBC, which returned some gains. Rio Tinto was 1.5% lower, while HSBC was down 1.8%. The bank's 7.9% stride on Wednesday meant it ended the day as the FTSE 100's largest constituent. Thursday's decline means drugmaker AstraZeneca has reclaimed that crown, however.
In Paris, Engie added 7.3% as it upped its 2026 view and announced a bumper acquisition. The electric company expects earnings before interest and tax, excluding nuclear, of EUR8.7 billion to EUR9.7 billion and recurring net income group share of EUR4.6 billion to EUR5.2 billion.
This is raised from previous guidance of EUR8.2 billion to EUR9.2 billion and EUR4.2 billion to EUR4.8 billion, respectively.
In addition, it announced the acquisition of electricity distributor UK Power Networks for an equity value of GBP10.5 billion in a deal with the CK Group.
Over in Frankfurt, insurer Allianz shed 1.3%. It said fourth quarter operating profit rose 3.0% on-year to EUR4.30 billion, beating consensus of EUR4.29 billion, though in Property-Casualty alone, operating profit rose 9.6% to EUR2.13 billion, below consensus of EUR2.16 billion.
Shining in London, Rolls-Royce surged 5.3%. It set out bullish new mid-term financial targets and launched its first multi-year share buyback programme as it delivered annual results ahead of forecast.
In 2025, pretax profit more than trebled to GBP6.94 billion from GBP2.23 billion, with revenue up 12% to GBP21.21 billion from GBP18.91 billion.
Underlying operating profit surged 41% to GBP3.46 billion from GBP2.46 billion, comparing favourably to consensus of GBP3.27 billion.
For 2026, Rolls-Royce expects underlying operating profit between GBP4.0 billion and GBP4.2 billion, as well as free cash flow in the range of GBP3.6 billion and GBP3.8 billion.
Based on the 2026 guidance, Erginbilgic said Rolls-Royce expects to deliver underlying operating profit within the prior mid-term guidance range two years earlier than planned.
Rolls-Royce announced a 5.0 pence final dividend, taking its full year payout to 9.5p, up from 6.0p in 2024.
In addition, the firm said its "strong balance sheet position, alongside our upgraded mid-term targets for operating profit and free cash flow, gives us confidence to announce our first multi-year buyback programme."
It announced a GBP7 billion to GBP9 billion share buyback programme for 2026 through to 2028, with a GBP2.5 billion chunk to be completed this year.
Hikma Pharmaceutical tumbled 17%. It announced a USD250 million buyback, lifted its dividend and unveiled leadership changes, though its softer outlook was in focus.
It 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 consensus of USD784 million.
Elsewhere in London, National Express owner Mobico surged 32% 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 USD1.3524, down from USD1.3537 late Wednesday. The euro ebbed to USD1.1801 from USD1.1804. Against the yen, the dollar bought JPY155.98, down from JPY156.39.
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 on Wednesday, the Dow Jones Industrial Average added 0.6%, the S&P 500 rose 0.8% and the Nasdaq Composite added 1.3%.
Nvidia edged up 0.2% after hours. It reported better than expected fourth quarter revenue, driven by 75% growth in its key Data Center business.
Nvidia 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.
In the current quarter, revenue is expected to be USD78.0 billion, plus or minus 2%, up from USD44.1 billion a year ago. Nvidia said it does not include any Data Center compute revenue from China in its outlook.
In Tokyo, the Nikkei 225 added 0.3%. The Shanghai Composite ended slightly lower while the Hang Seng Index in Hong Kong was down 1.4%. Sydney's S&P/ASX 200 added 0.5%.
A barrel of Brent fell to USD70.47 early Thursday, from USD70.76 at the time of the London equities close on Wednesday. Gold declined to USD5,178.21 an ounce from USD5,204.64.
Thursday's global economic calendar has US initial jobless claims data at 1330 GMT, after a eurozone consumer confidence reading at 1000.
By Eric Cunha, Alliance News news editor
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Rolls-RoyceHikma PharmaceuticalsMobico GroupRio TintoHSBC HoldingsAstrazenecaCk Infras.