The World Economic Forum in Davos has become a focal point for discussions on the potential impacts of President Trump's second term on the global economy and geopolitics. As leaders from around the world gather, European stock markets opened with positive momentum on Wednesday, reflecting investor optimism. The U.K.'s FTSE index saw a modest increase of 0.1%, Germany's DAX climbed by 0.7%, and France's CAC 40 edged up 0.1%. This upward trend followed a broad memorandum issued by Trump, directing federal agencies to assess unfair trade policies without imposing new levies.
CNBC continues its comprehensive coverage of the annual forum, with António Guterres, the United Nations Secretary-General, scheduled to address attendees at 11:30 a.m. Davos time. Meanwhile, Asia-Pacific markets mostly rose overnight, and S&P 500 futures increased following strong gains in the first trading session after Inauguration Day.
Adidas shares were a standout performer, surging by 5.96% by 8:51 a.m. London time after reporting a remarkable 19% increase in sales in its fourth-quarter results. The company's revenues approached 6 billion euros ($6.25 billion) in the last three months of 2024, excluding currency fluctuations. Analysts from JPMorgan, BNP Paribas, Exane, and Oddo responded positively by raising their price targets for Adidas shares.
"There is a lot of macroeconomic uncertainty right now, but we clearly have the goal to again grow double-digit with the adidas brand and use that growth to continue to improve our operating profit and make further progress towards our 10% margin target," said Bjørn Gulden, CEO of Adidas.
Global stock markets have been trading higher earlier this week as investors digested the initial executive orders signed by newly inaugurated U.S. President Donald Trump on Monday. European stocks mirrored this sentiment, with the pan-European Stoxx 600 rising by 0.3%. Financials led the market with a 1% gain, while utilities and mining sectors trailed slightly with a 0.3% increase.
In other economic news, the U.K. reported borrowing £17.8 billion ($21.9 billion) in December last year, marking £10.1 billion more than in December 2023. This figure represents the highest budget deficit recorded for December in four years and exceeded economists' expectations of £14 billion.
As the day progresses, Spanish Prime Minister Pedro Sanchez is slated to speak at 3:45 p.m., further contributing to the diverse array of insights at the Davos forum.