The European stock markets were surging higher in Wednesday trading amid reports that the US and Iran are close to an agreement that could end the war in the Middle East.
The Stoxx Europe was rising 2.1%, Germany's DAX was advancing 2.2%, the FTSE 100 was up 2%, France's CAC was gaining nearly 3%, and the Swiss Market Index was heading 1.7% higher.
Mining, defense, and automotive stocks were trending higher on the European bourses, while energy stocks were declining in line with tumbling oil prices.
S&P Global PMI survey data indicated stagflation in the euro area economy at the start of Q2, registering its first fall in private sector business activity since December 2024. Business confidence dropped to a 31-month low and employment continues to decline.
"The final eurozone PMI data confirm the earlier signs of an economy slipping into decline during April as the ongoing war in the Middle East derails the recovery that had been building prior to the outbreak of the conflict," S&P Global Market Intelligence Chief Business Economist Chris Williamson said.
In corporate news, Novo Nordisk said it expects generic versions of its Ozempic medication to face approval delays in China until next year, Bloomberg News reported Wednesday, citing the drugmaker.
The patent for semaglutide, the main ingredient in Ozempic and Wegovy, expired in China in March, but the company said it still has regulatory data protection until April 2027 due to a trade agreement between China and Switzerland, Bloomberg reported.
Novo Nordisk and Hangzhou Jiuyuan, which is seeking clearance for a generic, did not immediately respond to' requests for comment, while the Chinese regulatory authority could not be reached for comment.
The Danish pharmaceutical company also reported Q1 earnings Wednesday of 6.63 Danish kroner ($1.04) per diluted share, down from 6.82 kroner a year earlier. Analysts polled by FactSet expected 6.08 kroner.
Revenue for the quarter ended March 31 was 96.82 billion kroner, compared with 78.09 billion kroner a year earlier. Analysts surveyed by FactSet expected 71.19 billion kroner.
The company raised its 2026 adjusted sales growth guidance, mainly driven by increased expectations for GLP-1 product sales.
Shares of Novo Nordisk were trending 2.5% higher in Copenhagen.
Royal Philips reported Q1 adjusted income from continuing operations Wednesday of 0.23 euro ($0.27) per diluted share, down from 0.25 euro a year earlier. Analysts polled by FactSet expected 0.21 euro.
Sales for the quarter ended March 31 were 3.91 billion euros, compared with 4.10 billion euros a year earlier. Analysts surveyed by FactSet expected 3.88 billion euros.
For 2026, the Dutch electronics conglomerate continues to expect comparable sales growth of 3% to 4.5%. Analysts polled by FactSet expect sales of 17.82 billion euros.
Shares of Royal Philips were up 2.7% in Amsterdam.
Equinor reported Q1 adjusted earnings early Wednesday of $1.48 per share, up from $0.66 a year earlier. Analysts polled by FactSet expected $0.99.
Revenue for the quarter ended March 31 was $27.84 billion, down from $29.92 billion a year ago. Analysts surveyed by FactSet expected $28.58 billion.
For 2026, the Norwegian petroleum refiner expects oil and gas production to increase 3% year-over-year.
Shares of Equinor were dropping nearly 9% in Oslo.
Diageo reported Wednesday fiscal Q3 sales of $4.48 billion, up from $4.38 billion a year earlier. Analysts polled by FactSet expected $4.33 billion.
The company reaffirmed its fiscal 2026 organic sales guidance, projecting a decline of 2% to 3%. Analysts polled by FactSet are forecasting a decrease of about 2.3%.
Shares of the alcoholic beverage company were advancing close to 6% in London.
BHP on Wednesday failed in its bid to challenge a landmark UK ruling over the 2015 Fundao dam collapse in Brazil, as London's Court of Appeal rejected its case, leaving in place findings that could hold the miner liable for environmental damage, according to a court document.
The dam was owned and operated by Samarco Mineracao, a joint venture between BHP Brasil and Vale.
The Court of Appeal dismissed most grounds of appeal, rejecting claims of legal error, in a case stemming from the Fundao dam collapse that caused deaths and extensive environmental damage. The court highlighted the high bar for overturning detailed trial findings in complex, expert-driven cases, with a damages phase set to follow.
BHP did not immediately respond to' request for comment.
Shares of the mining company were climbing 5.7% in London.
Smith & Nephew reported fiscal Q1 revenue Wednesday of $1.50 billion, up from $1.41 billion a year earlier. Four analysts surveyed by FactSet expected $1.50 billion.
Smith & Nephew said its full-year outlook is unchanged, with the company on track to deliver underlying revenue growth of about 6%.
Smith & Nephew also announced a share buyback of $500 million, to be completed within the next 12 months.
Shares of the medical device maker were down 3% in London.