Market Update
S&P 500 Rebounds After U.S. Payroll Growth Slowed In May but Surpassed Expectations
Barry Adams
06 Jun, 2025
New York City
Wall Street indexes advanced, and nonfarm payrolls advanced more than expected in May.
The S&P 500 index increased 0.2%, and the Nasdaq Composite rose 0.5%, and the labor market remained resilient despite the negative impact of Trump's import tax and macroeconomic uncertainty unleashed by the Trump administration.
On Thursday, the S&P 500 index declined 0.5%, and the tech-heavy Nasdaq Composite fell 0.8%, largely because of the 15% plunge in Tesla.
Tesla lost ground in Thursday's trading after the U.S. president suggested in a post on social media that the U.S. government should end subsidizing electric vehicles and several federal government contracts for space transport.
Tesla's chief executive, Elon Musk, acted as a private advisor to the U.S. president and reportedly financed the reelection of Donald Trump by as much as $300 million.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 1.3% to 6,014.23, the Nasdaq Composite edged up 1.4% to 19,578.23, and the Russell 2000 index advanced 1.3% to 2,125.52.
The yield on 2-year Treasury notes edged higher to 4.00%, 10-year Treasury notes increased to 4.46%, and 30-year Treasury bonds advanced to 4.94%.
WTI crude oil increased $0.26 to $63.63 a barrel, and natural gas prices edged higher by $0.01 to $3.68 a thermal unit.
Gold increased by $5.17 to 3,358.22 an ounce, and silver edged up by $0.65 to $36.31.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.46 to 99.20 and traded at the lowest level since April 2022.
U.S. Stock Movers
Lululemon Athletica Inc. plunged 21% to $264.05 after the specialty apparel retailer lowered its full-year outlook, citing macroeconomic uncertainty.
The company lowered its full-year earnings per share range to between $14.58 and $14.78 from the previous range between $14.95 and $15.15.
Several retailers have either withdrawn or lowered their annual outlook, citing Trump's import tax on consumers, including Abercrombie & Fitch, American Eagle Outfitters, RH, Macy's, and Gap Inc.
Walmart and Home Depot have signaled that consumers are likely to see higher prices as early as this month amid higher import taxes and the constantly changing trade policy of the Trump administration.
Broadcom Inc. decreased 2.5% to $253.38 after the advanced chipmaker's revenue modestly beat expectations set by analysts.
However, the company's revenue and earnings outlook in the current quarter fell short of market expectations.
DocuSign Inc. plunged 19.5% to $75.20, and the electronic signature and document processing company reported weaker-than-expected organic revenue growth in the latest quarter.
S&P 500 Rebounds After U.S. Payroll Growth Slowed In May but Surpassed Expectations
Barry Adams
06 Jun, 2025
New York City
Wall Street indexes advanced, and nonfarm payrolls advanced more than expected in May.
The S&P 500 index increased 0.2%, and the Nasdaq Composite rose 0.5%, and the labor market remained resilient despite the negative impact of Trump's import tax and macroeconomic uncertainty unleashed by the Trump administration.
On Thursday, the S&P 500 index declined 0.5%, and the tech-heavy Nasdaq Composite fell 0.8%, largely because of the 15% plunge in Tesla.
Tesla lost ground in Thursday's trading after the U.S. president suggested in a post on social media that the U.S. government should end subsidizing electric vehicles and several federal government contracts for space transport.
Tesla's chief executive, Elon Musk, acted as a private advisor to the U.S. president and reportedly financed the reelection of Donald Trump by as much as $300 million.
U.S. Stock Movers
Lululemon Athletica Inc. plunged 21% to $264.05 after the specialty apparel retailer lowered its full-year outlook, citing macroeconomic uncertainty.
The company lowered its full-year earnings per share range to between $14.58 and $14.78 from the previous range between $14.95 and $15.15.
Several retailers have either withdrawn or lowered their annual outlook, citing Trump's import tax on consumers, including Abercrombie & Fitch, American Eagle Outfitters, RH, Macy's, and Gap Inc.
Walmart and Home Depot have signaled that consumers are likely to see higher prices as early as this month amid higher import taxes and the constantly changing trade policy of the Trump administration.
Broadcom Inc. decreased 2.5% to $253.38 after the advanced chipmaker's revenue modestly beat expectations set by analysts.
However, the company's revenue and earnings outlook in the current quarter fell short of market expectations.
DocuSign Inc. plunged 19.5% to $75.20, and the electronic signature and document processing company reported weaker-than-expected organic revenue growth in the latest quarter.
U.S. Movers: Broadcom, Ciena, DocuSign, Lands’ End, Lululemon
Scott Peters
06 Jun, 2025
New York City
Broadcom Inc. dropped 4.2% to $249.00 despite the provider of semiconductor and infrastructure software solutions reporting higher earnings for its second quarter of fiscal 2025 ending on May 4.
Revenue edged up to $15.0 billion from $12.49 billion, net income jumped to $4.96 billion from $2.12 billion, and diluted earnings per share rose to $1.03 from 44 cents a year ago.
The company repurchased 25.3 million shares for $4.22 billion in the quarter.
In addition, Broadcom announced a quarterly cash dividend of 59 cents per share, payable on June 30 to shareholders on record on June 20.
The company guided third-quarter revenue to be approximately $15.8 billion, compared to $13.1 billion a year earlier.
DocuSign Inc. slumped 16.8% to $77.30 despite the e-signature software provider reporting strong results for the first quarter of fiscal 2026, ending on April 30.
Revenue jumped to $763.65 million from $709.64 million, net income edged up to $72.09 million from $33.76 million, and diluted earnings per share rose to 34 cents from 16 cents a year ago.
The company repurchased its own common stock worth $183.4 million, compared to $149.1 million in the previous year, and as of June 5, the company has up to $1.4 billion under stock repurchase authorization.
DocuSign guided second-quarter revenue to be between $777 million and $781 million, compared to $736 million a year earlier.
For the full year, the company estimated total sales to range between $3.15 billion and $3.16 billion, compared to $2.98 billion in the previous year.
Ciena Corp. eased 0.1% to $73.00 after the provider of networking systems reported results of its second quarter of fiscal 2025, ending on May 3.
Revenue increased to $1.12 billion from $910.83 million, net income swung to a profit of $8.97 million from a loss of $16.85 million, and diluted earnings per share swung to a profit of 6 cents from a loss of 12 cents a year ago.
Inventories totaled $874.3 million, compared to $1.02 billion a year earlier.
The company repurchased approximately 1.2 million shares for a total of $84.3 million during the quarter.
Lands’ End Inc. dropped 4.8% to $8.51 after the apparel and footwear retailer reported an expanding net loss for the first quarter of fiscal 2025, ending on May 2.
Revenue declined to $261.21 million from $285.47 million, net loss widened to $8.26 million from a loss of $6.44 million, and diluted loss per share expanded to 27 cents from a loss of 20 cents a year ago.
The company repurchased $2.8 million of its own stock during the quarter, and as of May 2, additional repurchases of up to $10.6 million remained under authorization through March 31, 2026.
The retailer guided full-year revenue to range between $1.33 billion and $1.45 billion, net income between $8.0 million and $20.0 million, and diluted earnings per share between 25 cents and 64 cents.
In comparison, fiscal 2024 revenue was $1.36 billion, net income was $6.23 million, and diluted earnings per share were 20 cents.
Lululemon Athletica Inc. plunged 22.4% to $256.78 after the apparel company reported lower earnings for its first quarter of fiscal 2025, ending on May 4.
Revenue climbed to $2.37 billion from $2.20 billion, net income fell to $314.57 million from $321.42 million, and diluted earnings per share rose to $2.60 from $2.54 a year ago because of a fewer outstanding shares.
Comparable sales increased 1% from a year earlier, as sales in the Americas decreased 1% and international sales edged up 7% on a constant dollar basis.
The company repurchased 1.4 million of its shares for a cost of $430.4 million in the quarter and added three new company-operated stores, ending with 770 stores.
Lululemon guided second-quarter revenue to be between $2.53 billion and $2.56 billion, an increase of 7% to 8% from $2.37 billion, and diluted earnings per share between $2.85 and $2.90, compared to $3.15 a year ago, respectively.
For the full year, the apparel retailer estimated revenue to range between $11.15 billion and $11.30 billion, representing growth of 5% to 7% from $10.59 billion, and diluted earnings per share between $14.58 and $14.78, compared to $14.64 a year earlier, respectively.
U.S. Movers: Broadcom, Ciena, DocuSign, Lands’ End
Scott Peters
06 Jun, 2025
New York City
Broadcom Inc. dropped 4.2% to $249.00 despite the provider of semiconductor and infrastructure software solutions reporting higher earnings for its second quarter of fiscal 2025 ending on May 4.
Revenue edged up to $15.0 billion from $12.49 billion, net income jumped to $4.96 billion from $2.12 billion, and diluted earnings per share rose to $1.03 from 44 cents a year ago.
The company repurchased 25.3 million shares for $4.22 billion in the quarter.
In addition, Broadcom announced a quarterly cash dividend of 59 cents per share, payable on June 30 to shareholders on record on June 20.
The company guided third-quarter revenue to be approximately $15.8 billion, compared to $13.1 billion a year earlier.
DocuSign Inc. slumped 16.8% to $77.30 despite the e-signature software provider reporting strong results for the first quarter of fiscal 2026, ending on April 30.
Revenue jumped to $763.65 million from $709.64 million, net income edged up to $72.09 million from $33.76 million, and diluted earnings per share rose to 34 cents from 16 cents a year ago.
The company repurchased its own common stock worth $183.4 million, compared to $149.1 million in the previous year, and as of June 5, the company has up to $1.4 billion under stock repurchase authorization.
DocuSign guided second-quarter revenue to be between $777 million and $781 million, compared to $736 million a year earlier.
For the full year, the company estimated total sales to range between $3.15 billion and $3.16 billion, compared to $2.98 billion in the previous year.
Ciena Corp. eased 0.1% to $73.00 after the provider of networking systems reported results of its second quarter of fiscal 2025, ending on May 3.
Revenue increased to $1.12 billion from $910.83 million, net income swung to a profit of $8.97 million from a loss of $16.85 million, and diluted earnings per share swung to a profit of 6 cents from a loss of 12 cents a year ago.
Inventories totaled $874.3 million, compared to $1.02 billion a year earlier.
The company repurchased approximately 1.2 million shares for a total of $84.3 million during the quarter.
Lands’ End Inc. dropped 4.8% to $8.51 after the apparel and footwear retailer reported an expanding net loss for the first quarter of fiscal 2025, ending on May 2.
Revenue declined to $261.21 million from $285.47 million, net loss widened to $8.26 million from a loss of $6.44 million, and diluted loss per share expanded to 27 cents from a loss of 20 cents a year ago.
The company repurchased $2.8 million of its own stock during the quarter, and as of May 2, additional repurchases of up to $10.6 million remained under authorization through March 31, 2026.
The retailer guided full-year revenue to range between $1.33 billion and $1.45 billion, net income between $8.0 million and $20.0 million, and diluted earnings per share between 25 cents and 64 cents.
In comparison, fiscal 2024 revenue was $1.36 billion, net income was $6.23 million, and diluted earnings per share were 20 cents.
Japan Indexes Struggled After Softer Household Spending In April
Akira Ito
06 Jun, 2025
Tokyo
Stock market indexes in Japan edged higher on Friday after the recent phone call between leaders of China and the U.S. failed to settle trade policy differences.
The Nikkei 225 Stock Average gained 0.5%, and the Topix index edged up 0.4% amid hopes that the U.S. and China will soon resume trade negotiations.
Investor sentiment was cautious after the latest household income and spending report confirmed weak consumer sentiment.
The average monthly income of a salaried household with at least two members rose 4.1% in nominal term and was unchanged in real terms from a year ago in April at 589,528 yen, the Ministry of Internal Affairs and Communications said.
Nominal household spending in April was 325,717 yen, or $2,300, an increase of 4% from a year ago, according to the data released by the ministry.
Household spending in real terms declined for the first time in two months, as consumers cut spending on appliances and apparel, partly because of rising prices.
Spending on appliances and furniture declined 0.4%, footwear and apparel fell 2.1%, but food spending increased for the first time in eight months by 0.3% amid elevated but stable prices.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.5% to 37,741.61, and the broader Topix index gained 0.4% to 2,769.33.
Defense, steelmakers, vehicle makers, and heavy-industry companies dominated in Friday's trading.
IHI Corp. rose 2.4% to ¥15,550.0, Fujikura Ltd. increased 0.4% to ¥6,899.0, Nippon Steel Corp. advanced 1.7% to ¥2,900.0, and Toyota Motor Corp. gained 0.1% to ¥2,652.0.
Japan Indexes Struggled After Softer Household Spending In April
Akira Ito
06 Jun, 2025
Tokyo
Stock market indexes in Japan edged higher on Friday after the recent phone call between leaders of China and the U.S. failed to settle trade policy differences.
The Nikkei 225 Stock Average gained 0.5%, and the Topix index edged up 0.4% amid hopes that the U.S. and China will soon resume trade negotiations.
Investor sentiment was cautious after the latest household income and spending report confirmed weak consumer sentiment.
The average monthly income of a salaried household with at least two members rose 4.1% in nominal term and was unchanged in real terms from a year ago in April at 589,528 yen, the Ministry of Internal Affairs and Communications said.
Nominal household spending in April was 325,717 yen, or $2,300, an increase of 4% from a year ago, according to the data released by the ministry.
Household spending in real terms declined for the first time in two months, as consumers cut spending on appliances and apparel, partly because of rising prices.
Spending on appliances and furniture declined 0.4%, footwear and apparel fell 2.1%, but food spending increased for the first time in eight months by 0.3% amid elevated but stable prices.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.5% to 37,741.61, and the broader Topix index gained 0.4% to 2,769.33.
Defense, steelmakers, vehicle makers, and heavy-industry companies dominated in Friday's trading.
IHI Corp. rose 2.4% to ¥15,550.0, Fujikura Ltd. increased 0.4% to ¥6,899.0, Nippon Steel Corp. advanced 1.7% to ¥2,900.0, and Toyota Motor Corp. gained 0.1% to ¥2,652.0.
China Indexes Trim Weekly Gains After Trump-Xi Call Fails to Resolve Trade Tensions
Li Chen
06 Jun, 2025
Hong Kong
Stocks in China and Hong Kong declined on Friday's trading and trimmed weekly gains amid a lack of progress in trade talks.
The Hang Seng index declined 0.2%, and the mainland CSI 300 index decreased 0.1% after talks between leaders of China and the U.S. failed to break the impasse.
The leaders of China and the U.S. agreed to ease certain restrictions but failed to agree on a framework to settle on the level and scope of import taxes.
China's premier Xi Jinping agreed to roll back restrictions on rare earth mineral exports, and the U.S. president agreed to relax the recently placed ban on student visas.
For the week, the Hang Seng index advanced 3.4%, and the mainland-China-focused CSI 300 index added 0.6%.
China Indexes and Stocks
The Hang Seng index decreased 0.2% to 23,857.09, and the mainland-focused CSI 300 index fell 0.1% to 3,873.06.
Electric vehicle component makers dropped sharply following a 15% decline in Tesla in overnight trading in New York.
Tesla stock fell sharply after the feud between the company's chief executive, Elon Musk, and the U.S. president spilled out in public.
Donald Trump threatened to eliminate $18 billion in subsidies to various businesses controlled by Tesla, and Musk lashed out at the recent budgetary proposal approved by the U.S. House of Representatives.
CATL, which sells about 13% of its battery products to Tesla, decreased 1% to HK $306.0.
Shenzhen Everwin Precision Technology Company dropped 1.9% to 20.83 yen in Shenzhen trading after the supplier of electronic components fell amid a decline in Tesla stock in New York.
China Indexes Trim Weekly Gains After Trump-Xi Call Fails to Resolve Trade Tensions
Li Chen
06 Jun, 2025
Hong Kong
Stocks in China and Hong Kong declined on Friday's trading and trimmed weekly gains amid a lack of progress in trade talks.
The Hang Seng index declined 0.2%, and the mainland CSI 300 index decreased 0.1% after talks between leaders of China and the U.S. failed to break the impasse.
The leaders of China and the U.S. agreed to ease certain restrictions but failed to agree on a framework to settle on the level and scope of import taxes.
China's premier Xi Jinping agreed to roll back restrictions on rare earth mineral exports, and the U.S. president agreed to relax the recently placed ban on student visas.
For the week, the Hang Seng index advanced 3.4%, and the mainland-China-focused CSI 300 index added 0.6%.
China Indexes and Stocks
The Hang Seng index decreased 0.2% to 23,857.09, and the mainland-focused CSI 300 index fell 0.1% to 3,873.06.
Electric vehicle component makers dropped sharply following a 15% decline in Tesla in overnight trading in New York.
Tesla stock fell sharply after the feud between the company's chief executive, Elon Musk, and the U.S. president spilled out in public.
Donald Trump threatened to eliminate $18 billion in subsidies to various businesses controlled by Tesla, and Musk lashed out at the recent budgetary proposal approved by the U.S. House of Representatives.
CATL, which sells about 13% of its battery products to Tesla, decreased 1% to HK $306.0.
Shenzhen Everwin Precision Technology Company dropped 1.9% to 20.83 yen in Shenzhen trading after the supplier of electronic components fell amid a decline in Tesla stock in New York.
Trump's Import Tax Induced Macroeconomic Uncertainty Weighs on Investor Sentiment
Barry Adams
05 Jun, 2025
New York City
Stocks struggled to advance amid elevated trade tensions causing macroeconomic uncertainty.
The S&P 500 index declined 0.2%, and the tech-heavy Nasdaq Composite fell nearly 0.3%.
Investors turned cautious after the release of ADP's private payrolls data yesterday, raising stakes for the nonfarm payrolls data on Friday.
Economists are estimating nonfarm payrolls to expand by 110,000 in May, which would be about 67,000 less than in the previous month.
Benchmark indexes are on track to gain this week, amid expectations of the U.S. president backing down from its demand for sky-high tariffs on goods imported from China and the European Union.
The so-called TACO trade, Trump Always Chickens Out, has powered a rally in benchmark indexes from the lows reached on April 7.
Small businesses across the country are struggling to make ends meet amid Trump's erratic trade policy, which is causing severe damage to supply chains and whiplashing consumer sentiment.
U.S. Trade Deficit in Goods and Services Plunged in April
The U.S. trade deficit shrank 55% to $61.3 billion after imports plunged 16.3% to $351 billion and exports rose 3% to $289.3 billion, the Bureau of Economic Analysis reported Thursday.
The decline in deficit was driven by the fall in imports after businesses front-loaded orders in the previous month ahead of Trump tariffs.
The imports of pharmaceutical preparations, intermediate engineering goods, cell phones, and passenger cars declined sharply from the previous month.
The trade deficit with China declined to $19.7 billion from $24.2 billion in March, and with the European Union, it plunged to $17.9 billion from a whopping $48 billion, respectively.
Year-to-date, the goods and services deficit increased 65.7% to $179.3 billion from the same period a year ago.
Exports increased 5.5% to $58.4 billion, and imports increased 17.8% to $237.8 billion from a year ago, respectively.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.2% to 5,960.15, the Nasdaq Composite edged down 0.2% to 19,423.74, and the Russell 2000 index declined 0.02% to 2,097.98.
The yield on 2-year Treasury notes edged lower to 3.86%, 10-year Treasury notes increased to 4.36%, and 30-year Treasury bonds declined to 4.85%.
WTI crude oil increased $1.09 to $63.94 a barrel, and natural gas prices edged higher by $0.02 to $3.73 a thermal unit.
Gold increased by $14.52 to $3,387.70 an ounce, and silver edged up by $1.43 to $35.90.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.39 to 98.39 and traded at the lowest level since April 2022.
U.S. Stock Movers
Five Below Inc. jumped 10.5% to $134.0 after the low-priced goods retailer reported better-than-expected first-quarter results and guided second-quarter results.
In the fiscal first quarter, the discount retailer posted adjusted earnings per share of 86 cents on revenue of $971 million.
MongoDB Inc. soared 18.9% to $237.0 after the database company reported better-than-expected quarterly results and lifted its 2026 outlook.
PVH Corp. dropped 12.1% to $71.0 after the apparel maker lowered its current quarter for earnings per share, citing tariff impacts.
Meanwhile, the company's fiscal first quarter results surpassed analysts' expectations.
Verint Systems soared 18.9% to $21.78 after the consumer engagement platform operator reported better-than-expected adjusted earnings per share of 29 cents on revenue of $208 million.
Circle Internet Group priced its initial public offering at $31 a share, giving the stablecoin issuer a market cap of $6.8 billion.
The company's offering price surpassed the filing range of between $27 and $28 per share.
Trump's Import Tax Induced Macroeconomic Uncertainty Weighs on Investor Sentiment
Barry Adams
05 Jun, 2025
New York City
Stocks struggled to advance amid elevated trade tensions causing macroeconomic uncertainty.
The S&P 500 index declined 0.2%, and the tech-heavy Nasdaq Composite fell nearly 0.3%.
Investors turned cautious after the release of ADP's private payrolls data yesterday, raising stakes for the nonfarm payrolls data on Friday.
Economists are estimating nonfarm payrolls to expand by 110,000 in May, which would be about 67,000 less than in the previous month.
Benchmark indexes are on track to gain this week, amid expectations of the U.S. president backing down from its demand for sky-high tariffs on goods imported from China and the European Union.
The so-called TACO trade, Trump Always Chickens Out, has powered a rally in benchmark indexes from the lows reached on April 7.
Small businesses across the country are struggling to make ends meet amid Trump's erratic trade policy, which is causing severe damage to supply chains and whiplashing consumer sentiment.
U.S. Trade Deficit in Goods and Services Plunged in April
The U.S. trade deficit shrank 55% to $61.3 billion after imports plunged 16.3% to $351 billion and exports rose 3% to $289.3 billion, the Bureau of Economic Analysis reported Thursday.
The decline in deficit was driven by the fall in imports after businesses front-loaded orders in the previous month ahead of Trump tariffs.
The imports of pharmaceutical preparations, intermediate engineering goods, cell phones, and passenger cars declined sharply from the previous month.
The trade deficit with China declined to $19.7 billion from $24.2 billion in March, and with the European Union, it plunged to $17.9 billion from a whopping $48 billion, respectively.
Year-to-date, the goods and services deficit increased 65.7% to $179.3 billion from the same period a year ago.
Exports increased 5.5% to $58.4 billion, and imports increased 17.8% to $237.8 billion from a year ago, respectively.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.2% to 5,960.15, the Nasdaq Composite edged down 0.2% to 19,423.74, and the Russell 2000 index declined 0.02% to 2,097.98.
The yield on 2-year Treasury notes edged lower to 3.86%, 10-year Treasury notes increased to 4.36%, and 30-year Treasury bonds declined to 4.85%.
WTI crude oil increased $1.09 to $63.94 a barrel, and natural gas prices edged higher by $0.02 to $3.73 a thermal unit.
Gold increased by $14.52 to $3,387.70 an ounce, and silver edged up by $1.43 to $35.90.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.39 to 98.39 and traded at the lowest level since April 2022.
U.S. Stock Movers
Five Below Inc. jumped 10.5% to $134.0 after the low-priced goods retailer reported better-than-expected first-quarter results and guided second-quarter results.
In the fiscal first quarter, the discount retailer posted adjusted earnings per share of 86 cents on revenue of $971 million.
MongoDB Inc. soared 18.9% to $237.0 after the database company reported better-than-expected quarterly results and lifted its 2026 outlook.
PVH Corp. dropped 12.1% to $71.0 after the apparel maker lowered its current quarter for earnings per share, citing tariff impacts.
Meanwhile, the company's fiscal first quarter results surpassed analysts' expectations.
Verint Systems soared 18.9% to $21.78 after the consumer engagement platform operator reported better-than-expected adjusted earnings per share of 29 cents on revenue of $208 million.
Circle Internet Group priced its initial public offering at $31 a share, giving the stablecoin issuer a market cap of $6.8 billion.
The company's offering price surpassed the filing range of between $27 and $28 per share.
ECB Cuts Rates as Expected, Germany's Factory Orders Unexpectedly Advanced In April
Bridgette Randall
05 Jun, 2025
London
European stock market indexes edged slightly higher ahead of the ECB's rate decisions later in the day.
Benchmark indexes in Frankfurt, Paris, Milan, and London inched higher in lackluster trading as traders sold stocks after the European Central Bank's rate decisions.
The central bank as expected cut its deposit facility rate by 25 basis points to 2% and signal its readiness to cut more if needed.
After the 25 basis points rate cut, the Marginal Lending Rate stood at 2.40% and Main Refinancing Rate at 2.15%
Economists are anticipating the rate to drop to 1.5% by the end of the year as inflation hovers near 2% and economic growth in the currency zone remains anemic.
Eurozone inflation dropped to 1.9% in May from 2.2% in April, marking the first fall in inflation below the ECB's target rate of 2% for the first time since September 2024.
German Factory Orders Unexpectedly Advanced In April
In other economic news, Germany's factory orders unexpectedly increased in April, according to the latest data released by the Federal Statistical Office on Thursday.
Orders advanced 0.6% from the previous month, as importers front-loaded ahead of the expected jump in U.S. tariffs.
Excluding large orders, new orders inched higher, 0.3% from the previous month.
In a less volatile three-month comparison, new orders in the three months to April rose 0.5% from the previous three-month period; excluding large orders, they rose by 1.3%.
Europe Indexes and Yields
The DAX index increased by 0.2% to 24,320.54, the CAC-40 index edged higher by 0.2% to 7,820.45, and the FTSE 100 index advanced 0.04% to 8,804.58.
The yield on 10-year German bonds inched lower to 2.52%, French bonds decreased to 3.20%, UK gilts moved down to 4.60%, and Italian bonds edged lower to 3.48%.
The euro increased to $1.14; the British pound was higher at $1.36; and the U.S. dollar traded at 81.89 Swiss cents.
Brent crude increased by $0.29 to $65.15 a barrel, and the Dutch TTF natural gas was higher by €0.31 to €35.97 per MWh.
Europe Movers
LVMH added 0.7% to €480.15, Kering SA edged up 1% to €177.70, Salvatore Ferragamo SpA decreased 0.1% to €5.55, and Hermes International SCA declined 0.6% to €2,367.0.
Volkswagen Group AG declined 0.6% to €93.16, Mercedes-Benz Group edged up 0.3% to €51.65, Porsche Automobil Holding SE inched higher 0.3% to €34.41, and Renault SA gained 0.7% to €43.96.