European stocks traded higher on Wednesday, with the STOXX 50 up 0.4% as it sought to end a four-session losing streak, while the broader STOXX 600 gained 0.7%. Sentiment was supported by a renewed focus on corporate earnings, even as investors continued to track developments in the Middle East, where the conflict showed little sign of easing.
Allianz rose 1.6% after reporting record first-quarter earnings and profit. Merck jumped nearly 8% following a smaller-than-expected drop in earnings and an upgrade to its 2026 guidance. E.ON added almost 4% on the back of a modest increase in core earnings. Other notable gainers included ASML Holding (+2.2%), HSBC (+1.1%), ABB (+1.2%), and UBS (+2.0%).
On the downside, Siemens slipped 0.8% despite beating net profit forecasts and unveiling a new €6 billion share buyback programme. RWE fell 0.7% after delivering underwhelming results, while LVMH declined 1.1%.
