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.
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.
U.S. Indexes Hover at Record Highs Amid Earnings and Rate-Cut Optimism
Barry Adams
01 Jul, 2025
New York City
Wall Street indexes hovered at record highs amid trade talk optimism and rising expectations of a rate cut as early as September.
The S&P 500 index edged down 0.1%, the Nasdaq Composite decreased 0.2%, and the U.S. dollar continued to drift lower against the euro and the pound.
The S&P 500 index and the tech-heavy Nasdaq Composite advanced in Monday's trading after the Trump administration signaled progress in trade talks with Canada and China.
Despite the market sentiment's reversal over the last seven weeks, value investors remain on the sidelines amid a weakening economic backdrop, persistent prices, falling consumer sentiment, and a lack of details on trade talks.
Moreover, investors are concerned that economic growth may decline in the second half of the year due to prolonged inflation as businesses transfer higher costs associated with tariffs to consumers.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.2% to 6,193.10, the Nasdaq Composite edged down 0.4% to 20,289.69, and the Russell 2000 index declined 0.5% to 2,160.95.
The yield on 2-year Treasury notes edged higher to 3.73%, 10-year Treasury notes increased to 4.24%, and 30-year Treasury bonds declined to 4.76%.
WTI crude oil increased $0.38 to $65.49 a barrel, and natural gas prices edged lower by $0.11 to $3.35 a thermal unit.
Gold increased by $45.25 to $3,348.54 an ounce, and silver edged up by $0.18 to $36.28.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.20 to 96.68 and traded at the lowest level since April 2022.
U.S. Movers
Tesla Inc. dropped 5.7% to $299.57 after the U.S. president urged the Department of Government Efficiency to review government subsidies received by the electric vehicle maker.
Donald Trump urged the DOGE to review the subsidies after Tesla's CEO Elon Musk criticized the latest federal government budget that is expected to increase the current federal deficit of $36 trillion.
Progress Software Corp. declined 3.6% to $61.50 after the business application software developer reported weaker-than-expected second-quarter sales of $237.4 million.
AeroVironment, Inc., plunged 8% to $261.70 after the drone maker said it plans to raise $750 million through the sale of common stock and $600 million in convertible senior notes due in 2030.
U.S. Indexes Hover at Record Highs Amid Earnings and Rate-Cut Optimism
Barry Adams
01 Jul, 2025
New York City
Wall Street indexes hovered at record highs amid trade talk optimism and rising expectations of a rate cut as early as September.
The S&P 500 index edged down 0.1%, the Nasdaq Composite decreased 0.2%, and the U.S. dollar continued to drift lower against the euro and the pound.
The S&P 500 index and the tech-heavy Nasdaq Composite advanced in Monday's trading after the Trump administration signaled progress in trade talks with Canada and China.
Despite the market sentiment's reversal over the last seven weeks, value investors remain on the sidelines amid a weakening economic backdrop, persistent prices, falling consumer sentiment, and a lack of details on trade talks.
Moreover, investors are concerned that economic growth may decline in the second half of the year due to prolonged inflation as businesses transfer higher costs associated with tariffs to consumers.
U.S. Movers
Tesla Inc. dropped 5.7% to $299.57 after the U.S. president urged the Department of Government Efficiency to review government subsidies received by the electric vehicle maker.
Donald Trump urged the DOGE to review the subsidies after Tesla's CEO Elon Musk criticized the latest federal government budget that is expected to increase the current federal deficit of $36 trillion.
Progress Software Corp. declined 3.6% to $61.50 after the business application software developer reported weaker-than-expected second-quarter sales of $237.4 million.
AeroVironment, Inc., plunged 8% to $261.70 after the drone maker said it plans to raise $750 million through the sale of common stock and $600 million in convertible senior notes due in 2030.
Trade Talk Optimism Power 7-Week Market Rally On Monday
Barry Adams
30 Jun, 2025
New York City
The seven-week stock market rally on Monday extended gains as investors estimated an improving outlook for trade discussions.
The S&P 500 index edged up 0.4%, and the tech-heavy Nasdaq Composite inched up 0.6%, and the U.S. dollar index hovered near its multi-year low.
Benchmark indexes have rebounded more than 23% from the lows reached on April 8, and investors remain optimistic about the earnings outlook for the second quarter.
Over the last seven weeks, benchmark indexes rebounded after the Trump administration repeatedly backed down from the aggressive tariff stance, and the steady rise in consumer spending, driven in part by the sustained rise in wages, also supported the advance.
Retailers and manufacturing companies reliant on imported finished and intermediate goods have so far withstood the tariff-driven chaos, but small companies have suffered the worst impact of disruptions in international trade.
For now, investors are ignoring the Trump administration’s erratic trade policy, its unpredictable slide into a combative stance, and the weakening economic data while focusing on the upcoming earnings season.
This week investors are looking forward to the release of the manufacturing survey and construction spending data, non-farm payrolls, balance of trade, and factory orders.
On the earnings front, investors are anticipating results from Quantum Corp., Progress Software, Franklin Covey, Goodfellows Inc., PetMed Express, MSC Direct, Constellation Brands, Barnes & Noble Education, Greenbrier, and UniFirst Corp.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.2% to 6,187.79, the Nasdaq Composite edged up 0.1% to 20,296.68, and the Russell 2000 index advanced 0.3% to 2,179.09.
The yield on 2-year Treasury notes edged lower to 3.74%, 10-year Treasury notes decreased to 4.26%, and 30-year Treasury bonds declined to 4.83%.
WTI crude oil decreased $0.29 to $65.23 a barrel, and natural gas prices edged lower by $0.21 to $3.53 a thermal unit.
Gold increased by $15.74 to $3,284.04 an ounce, and silver edged up by $0.03 to $36.01.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.14 to 97.26 and traded at the lowest level since April 2022.
U.S. Stock Movers
Canada agreed to halt the start of the Digital Service Tax from Monday and resumed trade negotiations, driving leading tech companies higher in Monday's trading.
Amazon.com Inc. edged up 0.1% to $223.55, Meta Platforms Inc. advanced 0.2% to $746.15, Alphabet Inc. gained 1.9% to $181.85, Microsoft Corp. increased 0.9% to $497.84, and Apple Inc. inched higher 0.2% to $497.84.
Trade Talk Optimism Power 7-Week Market Rally On Monday
Barry Adams
30 Jun, 2025
New York City
The seven-week stock market rally on Monday extended gains as investors estimated an improving outlook for trade discussions.
The S&P 500 index edged up 0.4%, and the tech-heavy Nasdaq Composite inched up 0.6%, and the U.S. dollar index hovered near its multi-year low.
Benchmark indexes have rebounded more than 23% from the lows reached on April 8, and investors remain optimistic about the earnings outlook for the second quarter.
Over the last seven weeks, benchmark indexes rebounded after the Trump administration repeatedly backed down from the aggressive tariff stance, and the steady rise in consumer spending, driven in part by the sustained rise in wages, also supported the advance.
Retailers and manufacturing companies reliant on imported finished and intermediate goods have so far withstood the tariff-driven chaos, but small companies have suffered the worst impact of disruptions in international trade.
For now, investors are ignoring the Trump administration’s erratic trade policy, its unpredictable slide into a combative stance, and the weakening economic data while focusing on the upcoming earnings season.
This week investors are looking forward to the release of the manufacturing survey and construction spending data, non-farm payrolls, balance of trade, and factory orders.
On the earnings front, investors are anticipating results from Quantum Corp., Progress Software, Franklin Covey, Goodfellows Inc., PetMed Express, MSC Direct, Constellation Brands, Barnes & Noble Education, Greenbrier, and UniFirst Corp.
U.S. Stock Movers
Canada agreed to halt the start of the Digital Service Tax from Monday and resumed trade negotiations, driving leading tech companies higher in Monday's trading.
Amazon.com Inc. edged up 0.1% to $223.55, Meta Platforms Inc. advanced 0.2% to $746.15, Alphabet Inc. gained 1.9% to $181.85, Microsoft Corp. increased 0.9% to $497.84, and Apple Inc. inched higher 0.2% to $497.84.
Europe Movers: Porvair
Inga Muller
30 Jun, 2025
Frankfurt
Porvair Plc. declined 3.9% to 742.0 pence after the UK-based provider of filtration and separation solutions for various industries reported results for the first six months of 2025 ending on May 31.
Revenue increased to £97.7 million from £94.6 million, profit edged up to £9.3 million from £9.0 million, and earnings per share rose to 20.0 pence from 19.5 pence a year ago.
Revenue in the aerospace and industrial segment climbed 10%, laboratory sales were up 1%, and metal melt sales were down 6% from a year ago, respectively.
The company said aluminum and superalloy demand remained strong, while foundry operations weighed on the sales results, and the company made a £5.5 million cast shop investment.
Net cash at May 31 was £17.1 million, compared to £4.1 million a year earlier.
Europe Movers: Porvair
Inga Muller
30 Jun, 2025
Frankfurt
Porvair Plc. declined 3.9% to 742.0 pence after the UK-based provider of filtration and separation solutions for various industries reported results for the first six months of 2025 ending on May 31.
Revenue increased to £97.7 million from £94.6 million, profit edged up to £9.3 million from £9.0 million, and earnings per share rose to 20.0 pence from 19.5 pence a year ago.
Revenue in the aerospace and industrial segment climbed 10%, laboratory sales were up 1%, and metal melt sales were down 6% from a year ago, respectively.
The company said aluminum and superalloy demand remained strong, while foundry operations weighed on the sales results, and the company made a £5.5 million cast shop investment.
Net cash at May 31 was £17.1 million, compared to £4.1 million a year earlier.
European Markets Held Steady In June, Eurozone M3 Money Supply Growth Stood at 3.9% In May
Bridgette Randall
30 Jun, 2025
London
European markets struggled on Monday amid a lack of clarity on trade negotiations with the U.S. and unverifiable claims by the U.S. president.
Benchmark indexes in Frankfurt, Paris, Milan, and London struggled to advance, and they traded around the flatline after a month of trading in June.
Market sentiment remained cautious amid a lack of visible progress in bilateral talks between the European Union and the U.S., and high tariffs on vehicles and parts remain a sticky point.
Moreover, additional U.S. tariffs on steel, aluminum, and food products kept negotiators struggling to find a common ground.
The Trump administration's claims of key trading partners' readiness to sign trade deals under the threat of sky-high tariffs have so far proven to be wrong and misleading.
China, Japan, Canada, Mexico, and the European Union have resisted the threats of high U.S. tariffs, and key trading partners have retaliated with tariffs on U.S. goods and services.
Germany's Retail Sales Contracted for the 2nd Consecutive Month in May
On the economic front, Germany's retail sales unexpectedly declined in May, the Federal Statistical Office reported Monday.
Retail sales decreased 1.6% from the previous month and fell for the second consecutive month.
Food and non-food store sales decreased 1.3% and 2.2% from the previous month, respectively.
On an annual basis, retail sales increased at a slower pace of 1.6% compared to the upwardly revised 2.9% in April.
EU Private Sector Credit Expansion Growth Stayed Elevated In May
The annual growth rate of the broad monetary aggregate M3, or money supply, stood at 3.9% in May, unchanged from the previous month, averaging 3.8% in the three months to May.
Overall lending growth to the private sector, including households and corporations, held steady at 2.8% in May, according to the latest data from the European Central Bank.
The credit expansion to the private sector was the strongest since May 2023.
Lending to households increased to 2.0%, to 7.002 trillion, faster than a 1.9% rise in April, amid rising demand from consumers and falling interest rates.
Lending growth to non-financial businesses slowed to 2.5% from 2.6% in April.
Europe Indexes and Yields
The DAX index increased by 0.2% to 24,087.14, the CAC-40 index edged higher by 0.2% to 7,710.08, and the FTSE 100 index advanced 0.1% to 8,809.03.
The yield on 10-year German bonds inched lower to 2.58%, French bonds decreased to 3.26%, UK gilts moved down to 4.49%, and Italian bonds edged lower to 3.48%.
The euro increased to $1.17; the British pound was higher at $1.37; and the U.S. dollar edged lower and fell to a multi-year low of 79.77 Swiss cents.
Brent crude decreased $0.24 to $66.56 a barrel, and the Dutch TTF natural gas was higher by €0.03 to €33.46 per MWh.
Europe Stock Movers
Fashion and luxury stocks advanced amid hopes of a U.S. trade agreement ahead of the looming July 9 deadline.
LVMH edged up 0.3% to €450.55, Kering SA added 1.3% to €186.64, and Hermes International SCA added 1.1% to €2,300.0.
Defense stocks advanced for the third session in a row after NATO leaders pledged to increase defense spending to 5% of gross domestic product but failed to confirm the deadline.
Rheinmetall AG gained 1.5% to €1,778.0, MTU Aero Engines AG increased 0.6% to €376.90, BAE Systems plc added 0.7% to 1,874.0 pence, and Rolls Royce Holdings PLC edged up 2.2% to 974.40 pence.