Market Update
Europe Markets Lack Direction Ahead of Rate Decisions and Busy Week of Earnings and Economic Releases
Bridgette Randall
05 May, 2025
London
European markets diverged in Monday's trading, and investors awaited a busy week of earnings and economic data.
Benchmark indexes in Frankfurt advanced but fell in Paris, and financial markets were closed in London for a holiday.
Stock market indexes extended their rebound to the third week in a row amid positive earnings and hopes of a cooling of trade tensions between China and the U.S.
Investors are also hoping that the U.S. will extend the pause on tariffs on steel and aluminum imports from Europe beyond June.
The Bank of England is widely expected to cut rates by 25 basis points to 4.25% on Thursday, and investors are anticipating two additional rate cuts totaling 50 basis points in the remainder of the year.
The U.S. Federal Reserve is expected to hold steady its key fed funds rate range between 4.25% and 4.5%, despite the growing pressure from the White House to lower rates at the upcoming meeting.
Week Ahead
In Europe, investors are looking ahead to the release of the service sector activities, factory orders in Germany, France’s international trade data, and wholesale inflation in the eurozone.
Italy and the euro area are scheduled to release their retail sales reports, and Germany will report on construction, industrial production, and balance of trade as well.
Spain is scheduled to release its industrial production figures, and the U.K. will report on house prices, the Bank of England’s interest rate decision, and industrial and manufacturing production.
Italy is scheduled to release its industrial production data on Friday.
On the earnings front in Europe, investors are looking ahead to results from Ferrari, Phillips, Telenor, UniCredit, Novo Nordisk, BMW AG, Siemens Energy, Infineon Technologies, Commerzbank, Heidelberg Materials, and Swisscom.
Europe Indexes and Yields
The DAX index increased by 0.4% to 23,174.75, the CAC-40 index edged lower 0.4% to 7,737.89, and trading in London is closed on Monday.
The yield on 10-year German bonds inched higher to 2.52%, French bonds increased to 3.24%, UK gilts moved down to 4.52%, and Italian bonds edged lower to 3.63%.
The euro increased to $1.13; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 82.60 Swiss cents.
Brent crude decreased $1.22 to $60.07 a barrel, and the Dutch TTF natural gas was higher by €0.14 to €32.76 per MWh.
Europe Movers
Luxury fashion stocks traded higher after China and the U.S. appeared to warm up to start trade negotiations.
Kering SA decreased 0.6% to €179.62, Hermes International edged up 0.2% to €2,435.0, and LVMH decreased 0.4% to €493.95.
Banks led broader averages higher ahead of earnings results this week.
UniCredit SpA decreased 0.8% to €52.22, Commerzbank jumped 1.9% to €24.04, and Intesa Sanpaolo SpA advanced 0.3% to €4.77.
U.S. Movers: Berkshire Hathaway, Chevron, Exxon Mobil, Terex, T. Rowe
Scott Peters
05 May, 2025
New York City
Berkshire Hathaway Inc. advanced 1.8% to $539.80 after the diversified conglomerate with businesses in insurance, freight rail transportation, and utility sectors reported first-quarter 2025 results.
Revenue edged down to $89.72 billion from $89.87 billion, net earnings plunged to $4.60 billion from $12.70 billion, and earnings per share fell to $2.13 from $5.88 a year ago.
Exxon Mobil Corp. eased 0.06% to $106.15 after the energy company reported first-quarter 2025 results.
Revenue edged up to $83.13 billion from $83.08 billion, net income declined to $7.71 billion from $8.22 billion, and diluted earnings per share fell to $1.76 from $2.06 a year ago.
Cash flow from operating activities was $13.0 billion, and free cash flow was $8.8 billion.
During the quarter, the company returned $9.1 billion to shareholders, of which $4.3 billion was in dividends and $4.8 billion in share repurchases.
“This year, we're starting up 10 advantaged projects that are expected to generate more than $3 billion of earnings in 2026 at constant prices and margins,” the company said in a release to investors.
Exxon proposed a second-quarter dividend of 99 cents per share, payable on June 10 to shareholders on record as of May 15.
Chevron Corp. eased 0.07% to $138.40 after the energy company reported first-quarter 2025 results.
Revenue declined to $47.61 billion from $48.72 billion, net income plunged to $3.50 billion from $5.50 billion, and diluted earnings per share fell to $2.00 from $2.97 a year ago.
“Included in the quarter was a net loss of $175 million related to legal reserves and a tax charge due to changes in the energy profits levy in the United Kingdom that were partially offset by the fair value measurement of Hess Corporation shares,” the company said in a release to investors.
Foreign currency effects decreased earnings by $138 million, the company added in the statement.
Over the last three years, Chevron has returned more than $78 billion of cash to shareholders, and during the first quarter, the company returned $6.9 billion of cash, including share repurchases of $3.9 billion and dividends of $3.0 billion.
The energy company proposed a quarterly dividend of $1.71 per share, payable on June 10 to stockholders on record as of May 19.
T. Rowe Price Group Inc. inched down 0.05% to $91.60 after the investment management company reported first-quarter 2025 results.
Revenue edged up to $1.76 billion from $1.75 billion, net income declined to $490.5 million from $573.8 million, and diluted earnings per share fell to $2.15 from $2.49 a year ago.
Quarter-end assets under management increased 1.6% to $1.57 trillion from $1.54 trillion a year earlier.
The company returned $506 million to shareholders in the quarter from the recurring quarterly dividend and stock repurchases.
Terex Corp. traded flat at $39.83 after the industrial equipment provider reported first-quarter 2025 results.
Net sales declined to $1.23 billion from $1.29 billion, operating profit plunged to $111 million from $163 million, and earnings per share fell to 83 cents from $1.74 a year ago.
The company guided fiscal 2025 net sales to range between $5.30 billion and $5.50 billion, compared to $5.13 billion in 2024, and earnings per share to be between $4.70 and $5.10, compared to $4.96 a year earlier.
U.S. Movers: Berkshire Hathaway, Chevron, Exxon Mobil, Terex, T. Rowe
Scott Peters
05 May, 2025
New York City
Berkshire Hathaway Inc. advanced 1.8% to $539.80 after the diversified conglomerate with businesses in insurance, freight rail transportation, and utility sectors reported first-quarter 2025 results.
Revenue edged down to $89.72 billion from $89.87 billion, net earnings plunged to $4.60 billion from $12.70 billion, and earnings per share fell to $2.13 from $5.88 a year ago.
Exxon Mobil Corp. eased 0.06% to $106.15 after the energy company reported first-quarter 2025 results.
Revenue edged up to $83.13 billion from $83.08 billion, net income declined to $7.71 billion from $8.22 billion, and diluted earnings per share fell to $1.76 from $2.06 a year ago.
Cash flow from operating activities was $13.0 billion, and free cash flow was $8.8 billion.
During the quarter, the company returned $9.1 billion to shareholders, of which $4.3 billion was in dividends and $4.8 billion in share repurchases.
“This year, we're starting up 10 advantaged projects that are expected to generate more than $3 billion of earnings in 2026 at constant prices and margins,” the company said in a release to investors.
Exxon proposed a second-quarter dividend of 99 cents per share, payable on June 10 to shareholders on record as of May 15.
Chevron Corp. eased 0.07% to $138.40 after the energy company reported first-quarter 2025 results.
Revenue declined to $47.61 billion from $48.72 billion, net income plunged to $3.50 billion from $5.50 billion, and diluted earnings per share fell to $2.00 from $2.97 a year ago.
“Included in the quarter was a net loss of $175 million related to legal reserves and a tax charge due to changes in the energy profits levy in the United Kingdom that were partially offset by the fair value measurement of Hess Corporation shares,” the company said in a release to investors.
Foreign currency effects decreased earnings by $138 million, the company added in the statement.
Over the last three years, Chevron has returned more than $78 billion of cash to shareholders, and during the first quarter, the company returned $6.9 billion of cash, including share repurchases of $3.9 billion and dividends of $3.0 billion.
The energy company proposed a quarterly dividend of $1.71 per share, payable on June 10 to stockholders on record as of May 19.
T. Rowe Price Group Inc. inched down 0.05% to $91.60 after the investment management company reported first-quarter 2025 results.
Revenue edged up to $1.76 billion from $1.75 billion, net income declined to $490.5 million from $573.8 million, and diluted earnings per share fell to $2.15 from $2.49 a year ago.
Quarter-end assets under management increased 1.6% to $1.57 trillion from $1.54 trillion a year earlier.
The company returned $506 million to shareholders in the quarter from the recurring quarterly dividend and stock repurchases.
Terex Corp. traded flat at $39.83 after the industrial equipment provider reported first-quarter 2025 results.
Net sales declined to $1.23 billion from $1.29 billion, operating profit plunged to $111 million from $163 million, and earnings per share fell to 83 cents from $1.74 a year ago.
The company guided fiscal 2025 net sales to range between $5.30 billion and $5.50 billion, compared to $5.13 billion in 2024, and earnings per share to be between $4.70 and $5.10, compared to $4.96 a year earlier.
Europe Movers: Mercedes Benz, NatWest Group, Pearson
Inga Muller
05 May, 2025
Frankfurt
Mercedes-Benz Group gained 1.6% to €53.30 after the German vehicle manufacturer reported first-quarter 2025 results.
Revenue declined to €33.22 billion from €35.87 billion, net profit dropped to €1.68 billion from €2.97 billion, and diluted earnings per share fell to €1.74 from €2.86 a year ago.
“Weak consumer sentiment and the impact of a significant increase in US tariffs will weigh on growth this year, particularly in the USA,” the company said in a release to investors.
In China, the tariffs are expected to contribute to a significant slowdown in exports, amid persistently weak domestic demand; however, fiscal stimulus should support growth in return, the company added in the statement.
Overall, the company estimated a noticeable slowdown in global growth to just over 2%, partially offset by an increase in sales of mid-size vans in China.
Pearson plc advanced 0.7% to 1,182.50 pence after the UK-based learning company released a first-quarter trading update.
Group sales were up 1%, with growth expected to accelerate in the second half of the year, and sales in the higher education segment were up 6%.
The company launched a £350 million share buyback program during the quarter.
“We continue to make good progress against our strategy, supporting our medium-term growth outlook,” the company said in a release to investors.
Assessment and qualification sales were up 1% in the quarter, virtual learning sales decreased 4%, English language learning sales edged down 6%, and enterprise learning and skills sales were up 1%.
NatWest Group plc surged 0.7% to 479.10 pence after the UK-based banking and financial services company reported first-quarter 2025 results.
Total income increased by 14.5% to £3.98 billion from £3.47 billion, and attributable profit edged up 36.4% to £1.25 billion from £918 million a year ago.
The company guided fiscal 2025 return on tangible equity to be at the upper end of its previous estimated range of between 15% and 16%.
Income excluding notable items is expected to be at the upper end of the company’s previously guided range of £15.2 billion and £15.7 billion.
The bank expects group operating costs, excluding litigation and conduct costs, to be around £8.1 billion, including around £0.1 billion of one-time integration costs.
Europe Movers: Mercedes Benz, NatWest Group, Pearson
Inga Muller
05 May, 2025
Frankfurt
Mercedes Benz Group gained 1.6% to €53.30 after the German vehicle manufacturer reported first-quarter 2025 results.
Revenue declined to €33.22 billion from €35.87 billion, net profit dropped to €1.68 billion from €2.97 billion, and diluted earnings per share fell to €1.74 from €2.86 a year ago.
“Weak consumer sentiment and the impact of a significant increase in US tariffs will weigh on growth this year, particularly in the USA,” the company said in a release to investors.
In China, the tariffs are expected to contribute to a significant slowdown in exports, amid persistently weak domestic demand; however, fiscal stimulus should support growth in return, the company added in the statement.
Overall, the company estimated a noticeable slowdown in global growth to just over 2%, partially offset by an increase in sales of mid-size vans in China.
Pearson plc advanced 0.7% to 1,182.50 pence after the UK-based learning company released a first-quarter trading update.
Group sales were up 1%, with growth expected to accelerate in the second half of the year, and sales in the higher education segment were up 6%.
The company launched a £350 million share buyback program during the quarter.
“We continue to make good progress against our strategy, supporting our medium-term growth outlook,” the company said in a release to investors.
Assessment and qualification sales were up 1% in the quarter, virtual learning sales decreased 4%, English language learning sales edged down 6%, and enterprise learning and skills sales were up 1%.
NatWest Group plc surged 0.7% to 479.10 pence after the UK-based banking and financial services company reported first-quarter 2025 results.
Total income increased by 14.5% to £3.98 billion from £3.47 billion, and attributable profit edged up 36.4% to £1.25 billion from £918 million a year ago.
The company guided fiscal 2025 return on tangible equity to be at the upper end of its previous estimated range of between 15% and 16%.
Income excluding notable items is expected to be at the upper end of the company’s previously guided range of £15.2 billion and £15.7 billion.
The bank expects group operating costs, excluding litigation and conduct costs, to be around £8.1 billion, including around £0.1 billion of one-time integration costs.
India Indexes Extend Gains Despite Weak Bank Earnings, Crude Oil Drops to 4-Year Low
Arjun Pandit
05 May, 2025
Select
Stock market indexes in India advanced in Monday's trading as investors reviewed the fresh batch of earnings, and crude oil prices eased.
The Sensex and Nifty indexes advanced as investors increased exposures to recently beaten-down stocks.
Market sentiment improved after the international price of crude oil dropped to a four-year low of $56.45 a barrel after OPEC+ announced it would increase production after a meeting on Saturday.
Saudi Arabia, the leader of the OPEC+, decided to flood the market by as much as 2 million barrels over the six months to November and influence other members to curtail their excess production.
Investors also took note of a possible thawing of trade tensions between the U.S. and China after Beijing showed a willingness to discuss tariffs and trade frameworks.
Over the weekend, Singapore's long-ruling party, PAP, won another landslide victory in the general election held over the weekend, giving a boost to the new prime minister, Lawrence Wong.
In Australia, the Labor Party, headed by Prime Minister Anthony Albanese, increased its tally of members in the lower house of the parliament after the federal election on Sunday.
India Indexes and Stocks
Avenue Supermarts decreased 2.6% to ₹3,954.70, and the parent company of D Mart reported a 2% decline in profit in the March quarter.
Kotak Mahindra declined 5.5% to ₹2,070.50, and the financial services provider reported that revenue increased 17% and profit declined 14% in the March quarter.
State Bank of India decreased 1.4% to ₹2,070.50, and the financial services provider reported a profit in the March quarter declined 10% to ₹18,643 crore.
Marico Ltd. advanced 3.5% to ₹718.0, and the consumer products maker said March quarter profit rose 8%.
Tata Motors increased 1% to ₹661.70, and the company's board approved the sale of ₹500 crore non-convertible bonds.
India Indexes Extend Gains Despite Weak Bank Earnings, Crude Oil Drops to 4-Year Low
Arjun Pandit
05 May, 2025
Select
Stock market indexes in India advanced in Monday's trading as investors reviewed the fresh batch of earnings, and crude oil prices eased.
The Sensex and Nifty indexes advanced as investors increased exposures to recently beaten-down stocks.
Market sentiment improved after the international price of crude oil dropped to a four-year low of $56.45 a barrel after OPEC+ announced it would increase production after a meeting on Saturday.
Saudi Arabia, the leader of the OPEC+, decided to flood the market by as much as 2 million barrels over the six months to November and influence other members to curtail their excess production.
Investors also took note of a possible thawing of trade tensions between the U.S. and China after Beijing showed a willingness to discuss tariffs and trade frameworks.
Over the weekend, Singapore's long-ruling party, PAP, won another landslide victory in the general election held over the weekend, giving a boost to the new prime minister, Lawrence Wong.
In Australia, the Labor Party, headed by Prime Minister Anthony Albanese, increased its tally of members in the lower house of the parliament after the federal election on Sunday.
India Indexes and Stocks
Avenue Supermarts decreased 2.6% to ₹3,954.70, and the parent company of D Mart reported a 2% decline in profit in the March quarter.
Kotak Mahindra declined 5.5% to ₹2,070.50, and the financial services provider reported that revenue increased 17% and profit declined 14% in the March quarter.
State Bank of India decreased 1.4% to ₹2,070.50, and the financial services provider reported a profit in the March quarter declined 10% to ₹18,643 crore.
Marico Ltd. advanced 3.5% to ₹718.0, and the consumer products maker said March quarter profit rose 8%.
Tata Motors increased 1% to ₹661.70, and the company's board approved the sale of ₹500 crore non-convertible bonds.
India Update
Arjun Pandit
05 May, 2025
Select
India Indexes and Stocks
Avenue Supermarts decreased 2.6% to ₹3,954.70, and the parent company of D Mart reported a 2% decline in profit in the March quarter.
Kotak Mahindra declined 5.5% to ₹2,070.50, and the financial services provider reported a 17% increase in revenue and 14% decrease in profit in the March quarter.
India Update
Arjun Pandit
05 May, 2025
Select
India Indexes and Stocks
Avenue Supermarts decreased 2.6% to ₹3,954.70, and the parent company of D Mart reported a 2% decline in profit in the March quarter.
Kotak Mahindra declined 5.5% to ₹2,070.50, and the financial services provider reported a 17% increase
India Update
Arjun Pandit
05 May, 2025
Select
India Indexes and Stocks
Avenue Supermarts decreased 2.6% to ₹3,954.70, and the parent company of D Mart reported a 2% decline in profit in the March quarter.
Kotak Mahindra declined 5.5% to ₹2,070.50, and the financial services provider
India Update
Arjun Pandit
05 May, 2025
Select
India Indexes and Stocks
Avenue Supermarts decreased 2.6% to ₹3,954.70, and the parent company of D Mart reported a 2% decline in profit in the March quarter.
Kotak Mahindra declined 5.5% to ₹2,070.50, and the financial services provider
India Update
Arjun Pandit
05 May, 2025
Select
India Indexes and Stocks
Avenue Supermarts decreased 2.6% to ₹3,954.70, and the parent company of D Mart reported a 2% decline in profit in the March quarter.
Kotak Mahindra decl
India Update
Arjun Pandit
05 May, 2025
Select
India Indexes and Stocks
Avenue Supermarts decreased 2.6% to ₹3,954.70, and the parent company of D Mart reported a 2% decline in profit in the March quarter.
Kotak Mahindra declined 5.5% to ₹2,070.50, and the financial services
U.S. Job Market Remained Resilient Amid Tariff Flip-flops In Early April
Barry Adams
02 May, 2025
New York City
Wall Street indexes advanced in Friday's trading, and broader indexes are set to gain after a week of choppy trading.
The S&P 500 index advanced 1.1%, and the Nasdaq Composite gained 1.8%, and investors reacted to a flood of earnings and the latest update on nonfarm payrolls.
Apple Inc., Amazon, Airbnb, Exxon Mobil, and Chevron were in focus after they reported quarterly results.
This week, investors reviewed a flood of earnings, including updates from leading tech companies Microsoft and Meta Platforms on Thursday.
Investors reacted positively to the increase in payrolls in April, but the gain slowed sharply from the downwardly revised March data.
U.S. Job Growth Slowed Down In April Amid Tariff Uncertainty
The U.S. economy added 177,000 net new jobs in April, lower than the downwardly revised 185,000 in March, the U.S. Bureau of Labor Statistics reported Friday.
Employment in the healthcare sector increased by 52,000 jobs, in the transportation and warehousing by 29,000, in the financial activities increased by 14,000, and in the social assistance by 8,000.
The gains were ahead of market expectations because the two surveys that collect information were conducted in the second week in April, and the full impact of the country-specific tariff campaign may not be reflected in the data.
The jobless rate in April was unchanged at 4.2%, and the average hourly earnings for all employees on private nonfarm payrolls rose by 6 cents, or monthly 2% or annual 3.8%, to $36.06.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.9% to 5,653.70, the Nasdaq Composite edged up 0.7% to 17,836.78, and the Russell 2000 index was up 1.5% to 2,005.89.
The yield on 2-year Treasury notes edged higher to 3.79%, 10-year Treasury notes increased to 4.30%, and 30-year Treasury bonds advanced to 4.78%.
WTI crude oil decreased $0.20 to $59.03 a barrel, and natural gas prices edged higher by $0.08 to $3.56 a thermal unit.
Gold increased by $8.07 to $3,245.55 an ounce, and silver edged down by $0.06 to $32.38.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.40 to 99.84, and it traded at the lowest level since April 2022.
U.S. Stock Movers
Apple Inc. declined 2.8% to $207.29, despite the technology company reporting strong quarterly results.
The popular iPhone maker reported a slight decline in its sales in China and estimated that the tariff-related costs in the year are likely to be $900 million.
Amazon.com Inc. increased 1.2% to $192.55, and the online marketplace operator reported strong quarterly results, and the company's annual outlook was tempered by tariffs' impact.
Airbnb Inc. decreased 2.8% to $120.50, and the short-term rental company issued a disappointing revenue outlook for the second quarter.
Exxon Mobil increased 1.5% to $107.34, and the energy company
Revenue in the first quarter was flat at $81.1 billion, net income decreased to $7.7 billion from $8.2 billion, and diluted earnings per share eased to $1.76 from $2.06 a year ago, respectively.
U.S. Job Market Remained Resilient Amid Tariff Flip-flops In Early April
Barry Adams
02 May, 2025
New York City
Wall Street indexes advanced in Friday's trading, and broader indexes are set to gain after a week of choppy trading.
The S&P 500 index advanced 1.1%, and the Nasdaq Composite gained 1.8%, and investors reacted to a flood of earnings and the latest update on nonfarm payrolls.
Apple Inc., Amazon, Airbnb, Exxon Mobil, and Chevron were in focus after they reported quarterly results.
This week, investors reviewed a flood of earnings, including updates from leading tech companies Microsoft and Meta Platforms on Thursday.
Investors reacted positively to the increase in payrolls in April, but the gain slowed sharply from the downwardly revised March data.
U.S. Job Growth Slowed Down In April Amid Tariff Uncertainty
The U.S. economy added 177,000 net new jobs in April, lower than the downwardly revised 185,000 in March, the U.S. Bureau of Labor Statistics reported Friday.
Employment in the healthcare sector increased by 52,000 jobs, in the transportation and warehousing by 29,000, in the financial activities increased by 14,000, and in the social assistance by 8,000.
The gains were ahead of market expectations because the two surveys that collect information were conducted in the second week in April, and the full impact of the country-specific tariff campaign may not be reflected in the data.
The jobless rate in April was unchanged at 4.2%, and the average hourly earnings for all employees on private nonfarm payrolls rose by 6 cents, or monthly 2% or annual 3.8%, to $36.06.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.9% to 5,653.70, the Nasdaq Composite edged up 0.7% to 17,836.78, and the Russell 2000 index was up 1.5% to 2,005.89.
The yield on 2-year Treasury notes edged higher to 3.79%, 10-year Treasury notes increased to 4.30%, and 30-year Treasury bonds advanced to 4.78%.
WTI crude oil decreased $0.20 to $59.03 a barrel, and natural gas prices edged higher by $0.08 to $3.56 a thermal unit.
Gold increased by $8.07 to $3,245.55 an ounce, and silver edged down by $0.06 to $32.38.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.40 to 99.84, and it traded at the lowest level since April 2022.
U.S. Stock Movers
Apple Inc. declined 2.8% to $207.29, despite the technology company reporting strong quarterly results.
The popular iPhone maker reported a slight decline in its sales in China and estimated that the tariff-related costs in the year are likely to be $900 million.
Amazon.com Inc. increased 1.2% to $192.55, and the online marketplace operator reported strong quarterly results, and the company's annual outlook was tempered by tariffs' impact.
Airbnb Inc. decreased 2.8% to $120.50, and the short-term rental company issued a disappointing revenue outlook for the second quarter.
Exxon Mobil increased 1.5% to $107.34, and the energy company
Revenue in the first quarter was flat at $81.1 billion, net income decreased to $7.7 billion from $8.2 billion, and diluted earnings per share eased to $1.76 from $2.06 a year ago, respectively.