Europe open: Markets flat as investors weigh mixed earnings

European markets opened flat on Friday as investors continued to digest the previous day's interest-rate cuts and assessed a mixed bag of corporate earnings from across the continent.

The Stoxx 600 was up just 0.06% at 510.25 by 0945 CET, with benchmarks in London, Frankfurt and Paris all trading more or less unchanged.

European markets had risen the previous day after central banks in Sweden and the UK cut interest rates, with the US following suit following the closing bell in Europe. However, uncertainty surrounding Donald Trump's election victory and the ramifications of his proposed import tariffs on international trade have kept a lid on risk appetite in recent days.

As expected, the Federal Reserve cut the Fed Funds Rate by 25 basis points to the 4.5-4.75% range – its lowest since March 2023. The central bank refrained from giving any firm forward guidance around rates, saying it remains data dependent and will continue to "monitor the implications of incoming information for the economic outlook’. As such, the subsequent press conference with chair Jerome Powell was dominated by questions surrounding how Trump policies could alter the economic outlook.

"Many of Trump’s economic proposals could have big implications if passed into law, not least tariffs. This line in the statement suggests that the Fed is ready to adjust policy if Trump’s new economic order of tariffs and low taxes boosts inflation," said Kathleen Brooks, research director at XTB.

Back in Europe, the economic data schedule for Friday looked relatively quiet, with Swedish and Italian industrial output figures for September and French trade statistics the only major releases of the day.

Market movers

Richemont shares were down 3% after the Swiss luxury accessories group said weak consumer spending in China led to a 1% fall in second-quarter sales, missing analysts' estimates. Others in the sector such as Swatch Group and Kering also fell.

Polish retailer Dino Polska was up 10% after beating forecasts with its third-quarter results, which saw double-digit growth in both sales and gross profits.

Spanish and London-listed airline IAG also jumped after beating analysts' forecasts for topline growth in the third quarter and delivering strong guidance, as it unveiled a €350m share buyback plan.

Heading the other way was Vistry, which dropped 15% after the UK housebuilder warned on full-year profits again, cutting its forecast for completions and highlighting issues at its South Division.

Serco fell 11% after revealing it had lost a £165m-a-year long-running Australian immigration detention centres contract, and estimating changes to employer national insurance contributions will increase labour costs by £20m a year.

Meanwhile, Greggs was down 6% after Deutsche Bank cut its rating on the British bakery chain from 'hold' to 'sell' after accounting for recent changes to NI thresholds for the "labour-intensive leisure sector".