European markets rebound as oil prices fall; BOE and ECB hold rates

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LONDON — European stocks moved higher on Thursday as investors digested the latest reports on the Iran war and monitored a raft of corporate earnings and central bank decisions.

The pan-European Stoxx 600finished the day up 1.4%, reversing losses earlier in the session, with major bourses mixed and most regional sectors turning positive.

Earlier, Brent crude hit a wartime high, past $126 a barrel, following a report that the U.S. military would brief President Donald Trump on potential action against Iran, raising fears that armed conflict could resume, and that the blockade of Iranian ports would continue.

Prices later fell back, with June futures for international benchmark Brent crude last seen 3.3% lower at $114.18 a barrel. U.S. West Texas Intermediate prices dipped 2.1% to $104.61.

Axios reported that the U.S. Central Command was set to present Trump plans for possible military action against Iran, citing two sources with knowledge of the matter.

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Brent crude hits wartime high, nearing $125, as U.S. military to reportedly brief Trump on action against Iran

Trump’s big threats and Big Tech’s bigger wallets

In a busy day for corporate earnings, shares in Stellantis fell about 6.4% despite the multinational jeep maker reporting adjusted operating income of 960 million euros ($1.12 billion) for the first quarter, beating consensus estimates of 568 million euros. The firm, whose brands include Jeep, Dodge, Fiat, Chrysler and Peugeot, also notched a 6% first quarter increase in net revenues year-on-year.

In contrast, the Magnum Ice Cream Company soared 11.5%, with first-quarter organic sales growth up 4.5% year-on-year, at 1.77 billion.

Shares in Volkswagen rose 0.8% despite reporting a 14% dent in profits compared to a year ago. The German auto mainstay generated a 2.5 billion euros ($2.92 billion) profit first-quarter profit, which lagged analyst estimates.

French banks BNP Paribas and Societe Generale dropped 1.4% and 3.6%, respectively, after filing their first quarter earnings. BNP Paribas saw its first-quarter profits rise 9%, to 3.22 billion euros. SocGen’s group net income reached 1.69 billion euros, up 5.5% on the same period a year earlier.

Both the European Central Bank and the Bank of England voted to keep their key interest rate hold on Thursday, in line with expectations, as the Iran war continues to pose a dilemma for policymakers.

Meanwhile, preliminary data showed euro zone growth has stuttered in recent months, with GDP in the single currency region notching just 0.1% in the first quarter. Euro zone inflation increased 3% in April, rising from 2.6% in the 12 months to March.

It’s another busy day for earnings with Schneider Electric, Unilever, Glencore, ING, DHL Group, Credit Agricole, Standard Chartered, BASF, Ferrovial, Erste Group Bank, ArcelorMittal, Danske Bank, and Air France-KLM, among others, all reporting earnings.

— CNBC’s Lee Ying Shan contributed to this market report.

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