European equities extended their record-breaking run on Wednesday morning, supported by stronger technology shares, falling oil prices and optimism surrounding corporate earnings. Siemens Energy advanced after reporting record quarterly figures, while Novo Nordisk fell sharply as investors focused on pipeline concerns.
By FinanceMarkets.info — August 5, 2026
European stock markets opened moderately higher on Wednesday, August 5, following strong overnight gains on Wall Street and across Asia.
The pan-European STOXX 600 gained approximately 0.3% in early trading, extending Tuesday’s 0.7% advance that lifted the benchmark to a record closing level of 656.86 points.
The Euro STOXX 50 also moved higher, trading around 6,515 points—approximately 0.3% above its previous close—while most major national indices started the session in positive territory.
The opening remained highly selective, however. Strong results supported Siemens Energy and several technology companies, while Novo Nordisk dropped despite raising its full-year forecasts.
European indices at the opening
| Market | Index | Early performance |
|---|---|---|
| Europe | STOXX Europe 600 | Around +0.3% |
| Eurozone | Euro STOXX 50 | Around +0.3% |
| Germany | DAX | Higher |
| France | CAC 40 | Moderately higher |
| United Kingdom | FTSE 100 | Close to unchanged |
| Italy | FTSE MIB | Higher |
| Spain | IBEX 35 | Slightly higher |
Indicative figures from early European trading. Prices can change rapidly during the session.
Siemens Energy gains after record quarter
Siemens Energy was among the notable early winners after reporting record orders, revenue and profitability for its fiscal third quarter.
Profit before special items more than tripled to €1.62 billion, compared with €497 million a year earlier. Net income increased to €1.19 billion from €697 million, while pre-tax free cash flow rose to €2.32 billion.
The company said all of its operating segments delivered improved results. Siemens Gamesa made an especially important contribution and reported a positive result for the first time since fiscal 2022.
Siemens Energy maintained its upgraded full-year outlook and now expects its operating margin to finish near the upper end of the forecast range. The company also anticipates annual net income of approximately €4 billion and pre-tax free cash flow of around €8 billion.
Its shares gained roughly 2% in early Frankfurt trading as investors welcomed the improvement in profitability and cash generation.
Novo Nordisk falls despite improved forecasts
Novo Nordisk was one of the session’s most prominent losers, falling approximately 6% in Copenhagen.
The Danish pharmaceutical company raised its 2026 sales and operating-profit expectations. Nevertheless, investors remained concerned about weaker-than-anticipated sales of the oral version of Wegovy and setbacks affecting its next generation of obesity treatments.
Attention focused particularly on CagriSema, Novo Nordisk’s experimental obesity drug, after recent clinical data disappointed the market. Investors are also assessing whether the company’s development pipeline can compensate for future patent expirations affecting semaglutide, the active ingredient used in Wegovy and Ozempic.
Novo Nordisk CEO Mike Doustdar reiterated the company’s preference for smaller acquisitions designed to strengthen its research pipeline instead of pursuing a major transformative transaction.
The negative share-price reaction demonstrated that stronger short-term guidance was insufficient to overcome longer-term concerns about competition, product development and the sustainability of the group’s growth.
Technology stocks retain positive momentum
European technology and semiconductor shares remained supported after a strong performance on Tuesday.
The STOXX Europe technology sector had gained 2.8% during the previous session, led by BE Semiconductor Industries, Soitec, Aixtron, ASML and Infineon.
The sector continued to benefit from renewed enthusiasm surrounding artificial-intelligence investment. Wall Street’s Philadelphia Semiconductor Index surged 6.6% on Tuesday, while technology stocks also led large gains in Japan and South Korea overnight.
However, the reaction to AMD’s latest results provided a reminder that expectations remain extremely high. AMD shares fell in after-hours trading after its results failed to justify the stock’s recent gains, potentially limiting further advances among European chipmakers later in the session.
Falling oil prices support European sentiment
Oil prices continued to decline on Wednesday amid hopes that diplomatic negotiations could lead to the reopening of the Strait of Hormuz.
Brent crude traded below $79 per barrel, while US crude fell toward $75. The decline followed a drop of approximately 5% during Tuesday’s session.
Lower energy prices are generally favourable for European consumers, industrial companies, airlines and travel groups. They can reduce production and transportation costs while easing inflationary pressure.
Energy shares could nevertheless remain under pressure because lower crude prices directly affect the revenue outlook for oil producers including Shell, BP, TotalEnergies and Eni.
European energy stocks had already fallen 1.7% on Tuesday, making the sector one of the few areas to miss the broader market rally.
Wall Street and Asia provide positive lead
European investors also took encouragement from an exceptionally strong session in the United States.
The S&P 500 and Dow Jones Industrial Average both closed at record highs on Tuesday. The Dow gained more than 900 points, while the Nasdaq Composite jumped as AI-related earnings revived investor demand for technology shares.
Palantir surged almost 30% after increasing its annual revenue forecast, while Caterpillar gained 5.6% amid rising demand for infrastructure associated with artificial intelligence and data centres.
Asian markets followed Wall Street higher on Wednesday. Japan’s Nikkei 225 advanced by around 3.5%, South Korea’s Kospi climbed more than 4%, and Chinese blue-chip shares gained approximately 1.5%.
Opening winners and losers
Early winners
- Siemens Energy: gained after record quarterly orders, revenue and profitability.
- European semiconductor companies: supported by the global recovery in AI and chip stocks.
- Travel and leisure shares: benefited from the continued decline in oil prices.
- Industrial companies: supported by positive earnings and lower energy costs.
Early losers
- Novo Nordisk: fell around 6% despite raising its annual forecasts.
- European oil producers: pressured by Brent crude’s decline below $79.
- Companies delivering cautious outlooks: investors continued to punish earnings disappointments following recent falls in Lufthansa and Zalando.
What investors should watch today
Corporate results are likely to remain the dominant influence during the remainder of Wednesday’s session. Investors will closely follow management commentary from Siemens Energy and Novo Nordisk, as well as additional results from major European companies.
Markets will also monitor developments surrounding the Strait of Hormuz, movements in oil prices and comments from US Federal Reserve officials.
After the STOXX 600 reached another record on Tuesday, valuations are becoming increasingly demanding. While earnings and lower energy prices continue to support the market, individual companies face significant downside risk when their results or forecasts fail to meet elevated expectations.
European markets therefore begin Wednesday with a positive overall tone—but the widening gap between winners and losers suggests that stock selection remains essential.
Sources: Reuters – Asian stocks rise as technology sentiment improves, Reuters – Novo Nordisk faces investor concerns after results, Siemens Energy – Q3 2026 financial results, STOXX – Europe 600 index, Reuters – STOXX 600 reaches record high.
