European equity indices advanced modestly on Wednesday, August 27, 2025, as investor sentiment pivoted slightly from political turmoil in France to anticipation around Nvidia’s earnings. The STOXX 600 and CAC 40 both rose about 0.4%, signaling renewed buying interest.
France’s fragile political landscape remains a wild card. A no-confidence vote scheduled for September 8 over Prime Minister Bayrou’s budget reforms could unseat his government, unsettling domestic financial assets. Meanwhile, Nvidia’s earnings, expected within hours, stand as a litmus test for the broader AI-driven growth narrative—with consensus suggesting around 53% revenue growth to $46 billion.
Performance varied across sectors: Ørsted surged 3.5%, Novo Nordisk climbed 2%, and Porsche jumped 3.8% amid CEO succession rumors. Rio Tinto also gained nearly 1% following its operational restructure. Despite these bright spots, German consumer sentiment continued to weaken for a third month, weighed by rising inflation and employment concerns.
