Europe close: Stocks mixed as investors eye Nvidia earnings, Fed turmoil

(Sharecast News) - European stocks were mixed on Wednesday with traders across global equity markets scaling back their appetite for risk amid ongoing concerns about Federal Reserve independence and nervousness ahead of earnings from chip titan Nvidia.

The Stoxx 600 finished just 0.1% higher, with a slight rebound in Paris - following heavy falls the previous session related to political turmoil - and gains in Zurich partially offset by falls in London, Frankfurt, Milan and Madrid.

Meanwhile, Wall Street stocks were little changed, and Asian markets closed mixed overnight.

"When the world's biggest company is set to announce its results, it's no surprise to see markets draw breath before the big reveal," said Danni Hewson, head of financial analysis at AJ Bell. "Expectations are normally sky high for Nvidia earnings, and the tech giant has a knack for beating them."

Nvidia, widely considered the poster child for the AI industry, is expected to increase profits per share by nearly 50%.

Rumbling on in the background were ongoing concerns that the Fed is being opened up to direct political manipulation after Donald Trump suggested firing governor Lisa Cook - a move that would increase the influence of Trump-appointees on the board.

Meanwhile, over in France, investors were keeping an eye on politics after the country's three main opposition parties said they would not back a confidence vote called by Prime Minister Francois Bayrou for 8 September over his budget plans.

On the economics front a survey showed sentiment among German consumers was expected to fall for the third time in a row in September, with households' growing concerns about possible job loss and uncertainty about inflation weighing on the mood.

The forward-looking GfK consumer climate index fell to -23.6 for September, from a revised -21.7 for August, marking its lowest level since April and missing the -21.5 consensus forecast.

Market movers

Orsted gained again as the Danish wind power giant bounced back from a record low on Monday after the US government halted plans for a wind farm off Rhode Island.

Swiss watch company Swatch rose strongly after comments from its CEO Nick Hayek eased shareholder worries about the impact of US tariffs on the business. He said that the company had already lifted prices and increased inventories to mitigate the impact of additional duties.

Others in the luxury sector also rose, including Burberry, LVMH, Christian Dior, Moncler and Hermes.