12:02 PM EST, 02/25/2026 (MT Newswires) -- European stock markets were tracking mostly higher in Wednesday trading as the Stoxx Europe rose 0.67%, Germany's DAX gained 0.74%, the FTSE 100 increased 1.12%, France's CAC was up 0.43%, and the Swiss Market Index declined 0.1%.

The annual inflation rate in the euro area was 1.7% in January, down from 2.0% in December, while European Union annual inflation declined to 2.0% from 2.3% in December, according to Eurostat, the statistical office of the European Union. A year earlier, the inflation rate for the euro area and the EU was 2.5% and 2.8% respectively.

The lowest annual rates were in France (0.4%), Denmark (0.6%), and Finland and Italy (1.0% each). Meanwhile, the highest annual rates were in Romania (8.5%), Slovakia (4.3%) and Estonia (3.8%). Compared with December, annual inflation fell in 23 member states, remained unchanged in one, and rose in three.

In Germany, gross domestic product grew 0.3% in Q4, compared with Q3, adjusted for price, seasonal, and calendar effects, according to the Federal Statistical Office (Destatis).

"This means that the cyclical year of 2025 ended with an increase in economic output," Destatis President Ruth Brand said in a statement. "Private and government consumption expenditures contributed most to this positive development. Construction investment also increased significantly."

In corporate news, HSBC reported Wednesday 2025 earnings of $1.20 per diluted share, down from $1.24 per share a year earlier.

Revenue for the year ended Dec. 31 was $68.27 billion, up from $65.85 billion a year earlier. Analysts polled by FactSet expected $69.06 billion.

Shares of the British bank surged 7.6% in London.

GSK said Wednesday that it agreed to acquire Canadian biopharmaceutical company 35Pharma for $950 million in cash.

The acquisition is subject to US and Canadian regulatory clearances, the company said.

The acquisition includes 35Pharma's lead candidate HS235, which is being developed as a treatment for pulmonary arterial hypertension and pulmonary hypertension due to heart failure, the company said.

Shares of GSK gained 0.4% in London.

Novo Nordisk has entered into a partnership with Vivtex to develop oral biologics for obesity, diabetes and related conditions using Vivtex's drug delivery technologies, the companies said Wednesday.

Under the agreement, Vivtex is entitled to receive up to $2.1 billion in upfront payment, research funding, and milestone payments, as well as royalties on future product sales, according to a statement.

Shares of the Danish pharmaceutical company dropped more than 2% in Copenhagen.

Banco Santander said Wednesday it expects to generate more than 20 billion euros ($23.6 billion) in profit by 2028, driven by revenue growth and cost reductions.

The Spanish lender said it plans to grow revenue at a mid-single-digit pace while cutting total costs each year.

Shares of Banco Santander advanced 4% in Madrid.

Novartis said Wednesday it plans to build a 46,000-square-foot radioligand therapy manufacturing facility in Denton, Texas, marking its fifth US radiogland therapy manufacturing site and first in Texas, as part of a broader $23 billion US investment.

The company said construction is expected to begin this year, with the site projected to be fully operational in 2028.

Shares of the Swiss pharmaceutical company edged 0.1% higher in Zurich.

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