European equities finished a volatile Thursday session with an uneven performance. Corporate earnings and hopes of easing tensions around the Strait of Hormuz initially pushed the STOXX Europe 600 to a fresh intraday record, but gains narrowed after Wall Street opened lower. In Brussels, the BEL 20 reversed an early advance and closed 0.27% lower.
BRUSSELS, August 6, 2026 — European stock markets closed mixed on Thursday as investors balanced generally encouraging corporate earnings against renewed weakness in technology shares and an uncertain start on Wall Street.
The pan-European STOXX Europe 600 reached a record intraday level of 660.22 points, rising approximately 0.5% during the morning. The advance subsequently lost momentum as US technology stocks extended their decline after the opening bell.
Paris and Amsterdam retained modest gains, while London and Brussels finished lower. The BEL 20 closed at 5,760.20 points, down 0.27%, after approaching 5,800 points earlier in the session.
The Brussels reversal was particularly notable because KBC had initially supported the index after reporting a second-quarter profit of €1.152 billion and raising its 2026 income forecasts.
European indices at the close
| Index | Closing level | Daily change |
|---|---|---|
| STOXX Europe 600 | Near record territory | Modestly higher |
| Euro STOXX 50 | Around 6,520 | About +0.6% |
| CAC 40 | 8,699.71 | +0.35% |
| DAX | Near 26,000 | Little changed |
| FTSE 100 | 10,867.89 | -0.19% |
| AEX | 1,112.47 | +0.10% |
| BEL 20 | 5,760.20 | -0.27% |
| FTSE MIB | Around 53,800 | Higher during late trading |
| IBEX 35 | Higher | Among the stronger markets |
Levels reflect official or late-market data available after the European closing auctions. Small differences may occur between cash-market closes and delayed data providers.
Earnings lift Europe to another intraday record
European equities began the session positively as the latest corporate results reinforced confidence in the region’s earnings recovery.
Second-quarter earnings from STOXX 600 companies are now expected to increase by nearly 21% year on year, according to LSEG data reported by Reuters. At the beginning of May, analysts had expected growth of approximately 12.5%.
This substantial upward revision has allowed European markets to absorb geopolitical uncertainty, high energy prices and concerns about elevated interest rates.
The optimism was strongest in telecommunications and media stocks.
Deutsche Telekom gained nearly 7%, recording its best session since 2013, after increasing the maximum size of its 2026 share-buyback programme by €3 billion to €5 billion.
The company reported second-quarter adjusted EBITDA after leases of €11.8 billion, slightly above market expectations. Investors also welcomed management’s confidence in cash generation and its assessment that the shares remained undervalued.
Advertising group WPP surged by more than 20% after exceeding organic-growth expectations and reporting indications that its turnaround was progressing. The movement was the company’s largest one-day gain in more than three decades.
European winners
| Company | Approximate move | Principal catalyst |
|---|---|---|
| WPP | More than +20% | Better-than-feared results and turnaround progress |
| Hikma Pharmaceuticals | About +9% | Higher half-year operating profit |
| Deutsche Telekom | Nearly +7% | Buyback programme increased to €5 billion |
| Renk | Strongly higher | Second-quarter orders exceeded expectations |
| Diageo | +5.6% | Buying after corporate update |
| Hermès | Higher | Recovery in luxury shares |
| Merck KGaA | Higher | Improved 2026 earnings guidance |
WPP’s exceptionally sharp increase led the STOXX 600, while Deutsche Telekom was the strongest large-cap performer in Frankfurt.
In London, Diageo gained 5.6%, with trading volume more than twice its recent average. The rise helped limit the FTSE 100’s decline.
Siemens and technology shares weigh on the market
The positive reaction to Deutsche Telekom and WPP contrasted with continued pressure on technology and selected industrial companies.
Siemens fell by approximately 5% after investors reacted negatively to its quarterly publication. Although the company reported record industrial profit and orders, parts of the results failed to meet elevated market expectations.
Technology stocks also remained under pressure following weakness in Asian and US semiconductor shares.
Investors have become increasingly cautious about the exceptional capital expenditure required for artificial-intelligence infrastructure. Companies are now being asked to demonstrate that investment in chips, data centres and cloud capacity will produce sufficiently attractive returns.
ASML’s weakness limited the AEX’s advance, while semiconductor-related concerns also affected sentiment towards Melexis in Brussels.
European laggards
| Company | Approximate move | Principal factor |
|---|---|---|
| Siemens | About -5% | Mixed reaction to quarterly results |
| Rheinmetall | Volatile to lower | Reduced 2026 sales outlook |
| ASML | Lower | Global semiconductor pullback |
| Honeywell Aerospace* | Sharply lower | Reduced forecast |
| Western Digital* | Double-digit decline | Guidance disappointed investors |
| Sandisk* | Double-digit decline | High expectations overshadowed results |
US-listed companies included because their opening declines affected late European trading sentiment.
BEL 20 reverses its morning advance
Brussels presented two very different sessions within the same day.
The BEL 20 initially climbed towards 5,800 points, supported by KBC’s results, before reversing direction and closing at 5,760.20 points, down 15.75 points or 0.27%.
The benchmark nevertheless remains close to its August record and has gained more than 22% over the past twelve months.
The reversal reflected profit-taking in several heavily weighted constituents, including KBC, UCB, AB InBev, Groupe Bruxelles Lambert and Sofina.
KBC gives up an early record gain
KBC was the principal Belgian corporate story.
The bank-insurer reported second-quarter net profit of €1.152 billion, slightly above the average analyst forecast of approximately €1.11 billion.
Management also raised its full-year expectations:
- Expected total-income growth was increased to approximately 11%.
- Net interest income is now expected to reach around €7.05 billion.
- Customer lending increased compared with the previous quarter.
- Loan-impairment charges remained contained.
- Additional geopolitical provisions were considerably lower than during the first quarter.
KBC shares initially rose by approximately 2% and reached an intraday record above €130. The advance subsequently disappeared, with the stock ending near €127.20, approximately 0.4% below its earlier reference price.
The movement suggests that much of the improvement in KBC’s earnings outlook had already been reflected in its valuation. The shares remain one of the strongest-performing major Belgian financial stocks over the past year.
Brussels winners
The strongest Belgian performance came from Umicore, which gained approximately 4% in late-market data.
| Company | Approximate move | Closing focus |
|---|---|---|
| Umicore | About +4% | Strong buying in materials shares |
| Argenx | Modestly higher | Defensive biotechnology demand |
| Ageas | Slightly higher | Resilient insurance-sector trading |
| ING | Slightly higher | European banking strength |
| Engie | Higher | Defensive utility demand |
Umicore’s gain stood out in a generally weaker Belgian session. The stock remains volatile as investors assess the company’s battery-materials strategy, capital expenditure and exposure to electric-vehicle demand.
Argenx also provided support, while Ageas ended slightly higher.
Brussels losers
Several large BEL 20 constituents moved lower during the afternoon.
| Company | Approximate move | Principal market factor |
|---|---|---|
| UCB | About -1.8% | Profit-taking after recent strength |
| Groupe Bruxelles Lambert | About -1.5% | Weakness in diversified holdings |
| Sofina | About -0.9% | Pressure on growth investments |
| Ackermans & van Haaren | About -0.8% | Broad holding-company weakness |
| AB InBev | About -0.7% | Consumer-staples selling |
| KBC | About -0.4% | Early post-results gain reversed |
UCB’s decline had a meaningful effect on the BEL 20 because of the pharmaceutical group’s large index weighting.
Belgian holding companies also underperformed. GBL, Sofina and Ackermans & van Haaren were affected by profit-taking and the weaker performance of growth-oriented assets after Wall Street opened.
Middle East negotiations support—but do not eliminate—risk appetite
Geopolitical developments remained an important market driver.
Investors assessed a proposed arrangement involving Iran and Oman that could contribute to ending months of conflict and improving shipping conditions through the Strait of Hormuz.
The possibility of reopening this critical energy route initially supported European equities. A durable de-escalation could reduce oil, transport and insurance costs while easing inflationary pressure.
However, uncertainty remained high. Reports of attacks on Saudi tankers in the Red Sea and Gulf of Aden renewed supply concerns, while important aspects of any agreement—including the future administration of vessels entering the Gulf—remained unresolved.
Oil prices therefore stayed elevated, with Brent crude trading close to $80 per barrel.
Wall Street weakens Europe’s late momentum
The European rally began losing momentum after Wall Street opened.
The Dow Jones Industrial Average initially edged higher, but the S&P 500 and Nasdaq Composite declined as investors sold technology, software and data-storage companies.
Weakness in Datadog, Sandisk, Western Digital and Honeywell Aerospace encouraged European investors to reduce risk before the close.
This transatlantic influence was particularly visible in technology-sensitive markets such as Amsterdam and in shares such as ASML and Melexis.
Market outlook
Thursday’s session demonstrated that European equities remain supported by improving corporate earnings, but the rally is becoming increasingly selective.
WPP, Deutsche Telekom, Hikma Pharmaceuticals and Umicore benefited from company-specific catalysts. Siemens, UCB and several Belgian holding companies moved in the opposite direction.
For Brussels, the principal development was not simply the BEL 20’s 0.27% decline, but the scale of its intraday reversal. KBC’s strong results were initially sufficient to lift the index towards a record, yet the gains could not survive the weaker US opening and afternoon profit-taking.
Investors will now focus on:
- Whether Wall Street technology shares stabilise.
- Further developments surrounding the Strait of Hormuz.
- The sustainability of Europe’s stronger earnings forecasts.
- Bond yields and expectations for future ECB policy.
- Whether KBC can consolidate after its post-results reversal.
- Whether the BEL 20 can retest its August record.
European markets remain close to historic highs, but Thursday’s late retreat shows that investors are becoming less willing to overlook cautious guidance, high valuations or signs of weakening momentum.
Market prices may vary slightly between official closing auctions, delayed quotations and data providers. This article is provided for informational purposes and does not constitute investment advice.
Sources
- Reuters — European shares reach a record on earnings and US-Iran optimism — STOXX 600, earnings expectations, WPP, Deutsche Telekom and geopolitical context.
- Reuters — Deutsche Telekom expands its 2026 share-buyback programme — quarterly results and €5 billion buyback.
- Euronext — Official European index quotations — closing data for the BEL 20, CAC 40 and AEX.
- Euronext — KBC quotation and regulated announcements — KBC results and company information.
- Trading Economics — Belgian stock-market data — BEL 20 close and constituent movements.
- MarketWatch — FTSE 100 closing data — London close and Diageo performance.
