Market Update
Europe Movers Tuesday
Bridgette Randall
01 Jul, 2025
London
European markets edged down on the first day of the second half, and investors remained focused on the ongoing trade negotiations with the U.S.
The European Union's negotiators are looking to avert tariffs on pharmaceuticals and commercial aircrafts ahead of the U.S. deadline of July 9.
Moreover, EU negotiators are likely to uphold tough standards on U.S. food products amid worries of higher level of food chemicals and genetically modified varieties.
EU Consumer Price Inflation Edged Higher to 2%
On the economic front, consumer price inflation in the eurozone edged higher to 2% from an eight-month low of 1.9% in May, according to the latest data released by the Eurostat.
The slowdown in energy price inflation to 2.7% from 3.3% was overwhelmed by the slight acceleration in service inflation to 3.3% from 3.2% in May, respectively.
Core inflation, which excludes food and energy prices, was unchanged at 2.3%.
Germany's Job Seekers Approach Decade-High 3 Million
Germany's seasonally adjusted jobless rate held at 6.3% in June, according to the Federal Statistical Office or Destatis.
The jobless rate held for the fourth month in a row, and remained highest since September 2020.
The number of jobseekers increased by 11,000 to 2.97 million, the highest in a decade.
"The labour market continues to show signs of economic weakness. Unemployment continues to develop unfavorably.
And companies remain reluctant to hire," said labor office head Andrea Nahles.
Europe Indexes and Yields
The DAX index decreased by 0.6% to 23,762.53, the CAC-40 index edged lower 0.4% to 7,631.11, and the FTSE 100 index declined 0.3% to 8,738.06.
The yield on 10-year German bonds inched lower to 2.55%, French bonds decreased to 3.24%, the UK gilts moved down to 4.43%, and Italian bonds edged lower to 3.46%.
The euro increased to $1.18; the British pound was higher at $1.37; and the U.S. dollar was lower and traded at 79.00 Swiss cents.
Brent crude increased $0.49 to $67.23 a barrel, and the Dutch TTF natural gas was higher by €0.57 to €33.63 per MWh.
Europe Movers
Defense stocks declined following a surge in June.
Safran SA decreased 2.4% to €269.20, Airbus SE dropped 2.4% to €173.04, Dassault Aviation SA fell 2.2% €293.40, BAE Systems edged up 0.1% to 1,888.76, Rolls-Royce PLC fell 0.8% to 959.80 pence.
Luxury and fashion stocks traded higher amid optimism about the possible trade deal with the U.S.
LVMH added 3.4% to €459.70, Kering SA gained 4.2% to €192.44, Hermes International SCA edged up 0.2% to €2,303.0, Moncler SpA advanced 1.5% to €49.18.
Europe Movers: J Sainsbury, Sodexo
Inga Muller
01 Jul, 2025
Frankfurt
Sodexo Group traded up 1.3% to €52.90 after the French catering services provider to airlines reported sales results for the fiscal third quarter of 2025.
Revenue climbed to €6.12 billion from €6.07 billion a year ago, as North America sales declined 1.1%, Europe sales edged up 3.8%, and the rest of the world segment dropped 0.2%.
For the nine-month period, sales jumped to €18.60 billion from €18.17 billion a year earlier, as North America sales rose 2.2%, Europe sales increased 2.5%, and the rest of the world segment rose 2.2%.
On April 30, the company completed the acquisition of Agap’pro, a purchasing organization in the French market.
The food services company guided full-year revenue growth between 3% and 4%, compared to €23.8 billion in 2024.
J Sainsbury Plc. gained 1.7% to 294.76 pence after the UK-based food retailer released its first-quarter trading update for the sixteen weeks to June 21.
Total Sainsbury’s sales climbed to £7.80 billion from £7.43 billion a year ago.
Same-store sales excluding fuel jumped 4.7% in the quarter, while including fuel, sales were up 2.2% from a year ago.
Retail sales excluding fuel increased to £8.92 billion from £8.51 billion, while retail sales including fuel rose to £10.04 billion from £9.80 billion a year earlier.
Argos sales were up 4.4% to £1.12 billion from £1.08 billion in the same quarter a year ago.
Europe Movers: J Sainsbury, Sodexo
Inga Muller
01 Jul, 2025
Frankfurt
Sodexo Group traded up 1.3% to €52.90 after the French catering services provider to airlines reported sales results for the fiscal third quarter of 2025.
Revenue climbed to €6.12 billion from €6.07 billion a year ago, as North America sales declined 1.1%, Europe sales edged up 3.8%, and the rest of the world segment dropped 0.2%.
For the nine-month period, sales jumped to €18.60 billion from €18.17 billion a year earlier, as North America sales rose 2.2%, Europe sales increased 2.5%, and the rest of the world segment rose 2.2%.
On April 30, the company completed the acquisition of Agap’pro, a purchasing organization in the French market.
The food services company guided full-year revenue growth between 3% and 4%, compared to €23.8 billion in 2024.
J Sainsbury Plc. gained 1.7% to 294.76 pence after the UK-based food retailer released its first-quarter trading update for the sixteen weeks to June 21.
Total sales climbed to £7.80 billion from £7.43 billion a year ago.
Same-store sales excluding fuel jumped 4.7% in the quarter, while including fuel, sales were up 2.2% from a year ago.
Retail sales excluding fuel increased to £8.92 billion from £8.51 billion, while retail sales including fuel rose to £10.04 billion from £9.80 billion a year earlier.
Argos sales were up 4.4% to £1.12 billion from £1.08 billion in the same quarter a year ago.
U.S. Movers: MSC Industrial Direct, Progress Software
Scott Peters
01 Jul, 2025
New York City
Progress Software Corp. eased 3.7% to $61.48 after the business applications software provider reported results for the fiscal second quarter ending on May 31.
Revenue increased to $237.35 million from $175.08 million, net income climbed to $17.03 million from $16.19 million, and diluted earnings per share rose to 39 cents from 37 cents a year ago.
The company guided third-quarter revenue to be between $237 million and $243 million, compared to $179 million, and diluted earnings per share between 29 cents and 35 cents, compared to 65 cents a year earlier, respectively.
For the full year, the software company revised higher its revenue outlook range between $962 million and $974 million, compared to $753.41 million, and diluted earnings per share between $1.27 and $1.43, compared to $1.54 a year ago, respectively.
The company’s previous full-year guidance was for revenue between $958 million and $970 million and GAAP diluted earnings per share between $1.19 and $1.35.
MSC Industrial Direct Co. Inc. gained 3.5% to $87.99 despite the provider of metalworking and maintenance products and services reporting weak results for the fiscal third quarter of 2025 ending on May 31.
Net sales declined to $971.1 million from $979.4 million, net income edged down to $56.8 million from $71.7 million, and diluted earnings per share fell to $1.02 from $1.27 a year ago.
Operating income decreased to $82.7 million from $106.8 million, as operating margin declined to 8.5% from 10.9% a year earlier, respectively.