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European Stock Rally Pauses Ahead of Earnings Wave

Europe’s stock rally came to a pause on Thursday morning as investor focus turned from encouraging inflation data to the latest incoming flurry of corporate earnings. The Stoxx Europe 600 index remained stagnant during early trading, bringing a temporary halt to three days of consistent gains.

HelloFresh SE stocks slumped by 18% after the meal-kit company expressed an unexpected profit warning. Burberry Group Plc dropped by 6.7% after it warned that it may not be able to reach its full-year revenue target. In contrast, Siemens AG rose after analysts claimed that its fourth-quarter report was strong, while Hotel Chocolat Group Plc surged after it was acquired by Mars Inc. for £534 million.

Investors also await the incoming U.S. jobless claims report as well as industrial production figures, both due later on Thursday. The incoming earnings report of retail giant Walmart Inc. is also expected to provide insight into the current economic climate.

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