Key Takeaways
- European markets are broadly expected to open higher as a deluge of corporate earnings continues, with investor focus squarely on company performance amidst ongoing trade discussions.
- Major companies like Airbus (AIR) and Fincantieri (FCT) have reported their half-year 2025 results, with Airbus seeing strong commercial performance despite lower deliveries and Fincantieri experiencing significant revenue and EBITDA growth.
- The impact of potential U.S. tariffs remains a key concern for European firms, with some companies like Adidas (ADS) and Mercedes-Benz (MBG) already flagging potential price hikes or tariff impacts.
- Despite mixed global sentiment and continued foreign investor selling in some markets, domestic buying and strong corporate results are providing support for European indices.
European markets are poised for a broadly higher open today, July 31, 2025, as companies continue to release their latest earnings reports. This "earnings deluge" is a primary driver for investor sentiment, with market participants keen to assess corporate health and outlooks in the current economic climate.
Among the key companies reporting, Airbus (AIR) announced its half-year 2025 results, showing a strong commercial performance across the company. Despite a lower number of commercial aircraft deliveries compared to the previous year, the aerospace giant reported revenues of €29.6 billion and adjusted EBIT of €2.2 billion. Airbus's CEO, Guillaume Faury, noted the company is producing aircraft in line with plans but faces persistent engine supply issues on its A320 program.
Italian shipbuilding company Fincantieri (FCT) also reported robust first-half 2025 results, with revenues increasing by 24% to €4,576 million compared to the same period in 2024. The company's EBITDA saw a material increase of 45% to €311 million, driven by growth across all business segments. Meanwhile, French lottery and gaming operator FDJ (FDJ) reported first-half revenue of €1,867 million, up 31% compared to H1 2024, with a recurring EBITDA of €441 million.
The ongoing discussions surrounding U.S. tariffs continue to influence market sentiment. While a recent agreement between the EU and the U.S. to revert to a zero-tariff approach for civil aircraft is a welcome development for the aerospace industry, other sectors are still grappling with potential impacts. Companies such as Adidas (ADS), Porsche (P911), and Aston Martin (AML) have indicated that U.S. tariffs could lead to price hikes or increased costs. Mercedes-Benz (MBG) estimated a nearly $420 million tariff impact.
Despite these concerns, analysts broadly anticipate an improvement in corporate health following the U.S.-EU trade agreement. While some global markets are experiencing muted sentiment and foreign institutional investor (FII) selling, consistent domestic institutional investor (DII) buying is helping to cushion the impact on local indices. European stock exchanges, including Euronext markets, are operating on a full trading day schedule today, July 31, 2025.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.