European Stock Markets Mixed Ahead of US Inflation Data

European equity markets closed without clear direction in this penultimate session of the week. Paris stood out, outperforming other major financial centers across the continent. The CAC 40, which hit a morning high of 8,437.35 points, saw its daily gains wiped out late in the session, falling sharply from over 1% up to close just 0.33% higher at 8,341 points. The Euro Stoxx 50 ultimately slipped 0.51% to 6,005 points. London and Frankfurt dropped by 0.75% and 0.11%, respectively.

Corporate earnings took center stage during today's session, with Legrand, Michelin, and EssilorLuxottica particularly shining before paring gains by the close.

Tire maker Michelin (+4.88%) led the Paris benchmark index. Its plan to launch a €2 billion share buyback program pleasantly surprised analysts, who also noted an improvement in profit momentum.

EssilorLuxottica (+4.19%) posted a 7.5% increase in 2025 sales, buoyed by strong demand for AI-integrated eyewear. In the fourth quarter, sales soared by more than 18%, an unprecedented performance.

Legrand (+3.01%) delivered robust annual results accompanied by an upgrade to its medium-term targets.

Conversely, Sanofi (-4.19%) finished second to last on the CAC 40. The pharmaceutical group announced the appointment of Belén Garijo as CEO, following the board's decision not to renew Paul Hudson's directorship.

Elsewhere in Europe, Dutch fintech Adyen (-20.26%) plunged in Amsterdam after posting a disappointing 2025 annual report.

US Existing Home Sales Plunge

This wave of earnings somewhat overshadowed the day's economic data, coming on the eve of the release of US inflation figures.

Weekly jobless claims came in above expectations: 227,000 versus 222,000 expected, and after 232,000 the previous week.

Market participants also noted the sharp drop in existing home sales, which fell by 8.4% in January after a 4.4% increase in December, according to the National Association of Realtors. Analysts had only expected a 3.4% decline.

On the currency markets, the euro edged down 0.04% to trade at 1.1867 USD.

In commodities, Brent crude slipped 2%, mirroring a similar drop in US benchmark WTI.