European stocks rally on earnings day as SAP suffers sharp loss

January 29, 2026

European markets opened higher on Thursday as investors digested a wave of corporate earnings, but mixed results left some major players under pressure.

The Stoxx Europe 600, a benchmark for pan-European equities, rose 0.5 percent by mid-morning in London, signaling renewed investor optimism after the previous day’s decline. National indices showed varied performance: France’s CAC 40 gained 0.89 percent, the UK’s FTSE 100 added 1.01 percent, Italy’s FTSE MIB climbed 0.76 PERCENT, and Spain’s IBEX 35 advanced 1.1 percent. Germany’s DAX, however, fell 0.82 percent amid a sharp decline in SAP shares.

SAP plummeted 14 percent, marking its largest drop since 2020, after the software giant reported weaker-than-expected cloud revenue and warned of slower backlog growth in 2026. The slump dragged the broader DAX index lower by nearly 1 percent.

In contrast, ABB, the Swiss engineering and technology group, surged 10% following record fourth-quarter orders totaling US$10.32 billion, a 36 percent increase over the previous quarter. Deutsche Bank also beat expectations with net profits of €1.3 billion (US$1.56 billion) for Q4, exceeding analyst forecasts of €1.12 billion, despite recent regulatory investigations. Shares rose 1.4 percent on the news.

Other financial sector results were mixed. ING Groep posted net profits of €1.4 billion (US$1.68 billion), topping estimates, while Swedbank climbed 1.5 percent. Meanwhile, SEB fell 6.5percent after missing fourth-quarter profit targets.

Pharmaceutical giants reported modest moves: Roche rose 0.3 percent, while Sanofi slipped 0.1 percent, reflecting uneven earnings. Additional corporate reports included Wizz Air, Nokia, and STMicroelectronics.

Investors also turned attention to the United States, with Apple, Mastercard, Caterpillar, and Lockheed Martin set to report earnings after U.S. markets closed. Futures for the S&P 500 remained largely unchanged following the Federal Reserve’s decision to maintain rates at 3.5–3.75percent, with markets anticipating two quarter-point cuts by the end of the year.

Sector highlights: Basic resources led the gains with a 3.2 percent jump, while financial services rose 1.4% and banking stocks increased 0.6 percent. Asia-Pacific markets largely traded lower, reflecting ongoing global market uncertainty.

Thursday’s session, dubbed “Super Thursday,” underscored the market’s sensitivity to earnings news and the ongoing tug-of-war between strong corporate performance and macroeconomic headwinds.