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European Markets Trend Lower Ahead of Rate Decisions, Spain's Labor Market Remains Resilient

Bridgette Randall
03 Jun, 2025
London

Stock market indexes across Europe struggled to advance ahead of rate decisions by the European Central Bank.

Benchmark indexes in Frankfurt, Paris, Milan, and London decreased ahead of the release of inflation data in the eurozone.

Overall consumer price inflation in the eurozone is expected to weaken to 2% in May, largely reflecting the weakness in transportation fuel prices and slower food price inflation.

The decline in inflation is likely to support the European Central Bank's decision to lower interest rates on Thursday, as the policymakers take steps to ward off the negative impact of the trade uncertainties with the U.S.

Spain's Labor Market Remains Resilient

The number of registered job seekers in Spain decreased by 2.3%, or 57,835, from the previous month to 2.455 million in May, according to the latest data released by the Ministry of Employment and Social Welfare.

The registered count of jobless people fell below 2.5 million for the first time since July 2008.

Compared to the same month last year, unemployment fell by 152,967 people, or 5.87%, and those receiving unemployment benefits at the end of April were 1.515 million.

The youth unemployment under 25 fell by 6,426 from the previous month in May to 171,003, the lowest level since the record keeping began.

Europe Indexes and Yields

The DAX index increased by 0.3% to 23,997.97, the CAC-40 index edged higher 0.3% to 7,757.82, but the FTSE 100 index declined 0.1% to 8,766.76.

The yield on 10-year German bonds inched lower to 2.49%, French bonds decreased to 3.15%, UK gilts moved down to 4.61%, and Italian bonds edged lower to 3.48%.

The euro decreased to $1.14; the British pound was lower at $1.35; and the U.S. dollar was higher and traded at 81.75 Swiss cents.

Brent crude increased $0.23 to $64.86 a barrel, and the Dutch TTF natural gas was higher by €0.30 to €35.28 per MWh.

Europe Stock Movers

Julius Baer Gruppe AG decreased 2% to CHF 52.90, and the Swiss bank's new chief executive announced an additional cost cuts of CHF 130 million by 2028.

Vehicle makers turned lower after the U.S. increased additional duties on steel and aluminum to 50% from 25%.

BMW AG decreased 0.2% to €76.08, Mercedes-Benz Group fell 0.7% to €76.08, Daimler Truck Holding AG declined 0.3% to €36.77, Renault SA eased 0.6% to €43.44, and Volkswagen Group inched lower 0.5% to €93.08.

European Markets Trend Lower Ahead of Rate Decisions, Spain's Labor Market Remains Resilient

Bridgette Randall
03 Jun, 2025
London

Stock market indexes across Europe struggled to advance ahead of rate decisions by the European Central Bank.

Benchmark indexes in Frankfurt, Paris, Milan, and London decreased ahead of the release of inflation data in the eurozone.

Overall consumer price inflation in the eurozone is expected to weaken to 2% in May, largely reflecting the weakness in transportation fuel prices and slower food price inflation.

The decline in inflation is likely to support the European Central Bank's decision to lower interest rates on Thursday, as the policymakers take steps to ward off the negative impact of the trade uncertainties with the U.S.

Spain's Labor Market Remains Resilient

The number of registered job seekers in Spain decreased by 2.3%, or 57,835, from the previous month to 2.455 million in May, according to the latest data released by the Ministry of Employment and Social Welfare.

The registered count of jobless people fell below 2.5 million for the first time since July 2008.

Compared to the same month last year, unemployment fell by 152,967 people, or 5.87%, and those receiving unemployment benefits at the end of April were 1.515 million.

The youth unemployment under 25 fell by 6,426 from the previous month in May to 171,003, the lowest level since the record keeping began.

Europe Indexes and Yields

The DAX index increased by 0.3% to 23,997.97, the CAC-40 index edged higher 0.3% to 7,757.82, but the FTSE 100 index declined 0.1% to 8,766.76.

The yield on 10-year German bonds inched lower to 2.49%, French bonds decreased to 3.15%, UK gilts moved down to 4.61%, and Italian bonds edged lower to 3.48%.

The euro decreased to $1.14; the British pound was lower at $1.35; and the U.S. dollar was higher and traded at 81.75 Swiss cents.

Brent crude increased $0.23 to $64.86 a barrel, and the Dutch TTF natural gas was higher by €0.30 to €35.28 per MWh.

Europe Stock Movers

Julius Baer Gruppe AG decreased 2% to CHF 52.90, and the Swiss bank's new chief executive announced an additional cost cuts of CHF 130 million by 2028.

Vehicle makers turned lower after the U.S. increased additional duties on steel and aluminum to 50% from 25%.

BMW AG decreased 0.2% to €76.08, Mercedes-Benz Group fell 0.7% to €76.08, Daimler Truck Holding AG declined 0.3% to €36.77, Renault SA eased 0.6% to €43.44, and Volkswagen Group inched lower 0.5% to €93.08.

Europe Movers: BAT, Chemring Group, Pennon Group, Tate & Lyle, Volvo Car

Inga Muller
03 Jun, 2025
Frankfurt

Volvo Car AB dropped 2.4% to 16.98 krona after the Swedish passenger car manufacturer reported first-quarter 2025 results.

Revenue declined to SEK 82.95 billion from SEK 93.88 billion, net income edged down to SEK 1.20 billion from SEK 3.34 billion, and diluted earnings per share fell to SEK 0.40 from SEK 1.12 a year ago.

During the quarter, the company launched two new car models: the fully electric ES90 and a small, fully electric SUV, the EX30 Cross Country.

In February, the company completed the divestment of its 30% stake in Lynk & Co. to Zhejiang Zeekr Intelligent Technology Co. Ltd.

Tate & Lyle plc declined 1.1% to 547.00 pence after the UK-based specialty food and beverage company reported fiscal year results ending in March.

Revenue climbed to £1.74 billion from £1.65 billion, profit declined to £143 million from £188 million, and diluted earnings per share fell to 11.6 pence from 39.8 pence a year ago.

Given the significant benefits of the combination with CP Kelco ApS, the company expects revenue growth towards the higher end of its 4% to 6% range each year.

The company said that tariffs and the associated uncertainty have increased costs for both the business and its customers, mainly for products supplied between the U.S. and China.

The company has completed share repurchases worth £216 million, returning proceeds from Primient disposal to shareholders.

Furthermore, Tate & Lyle has proposed a final dividend of 13.4 pence per share and a full-year dividend of 19.8 pence per share, an increase of 3.7% over the previous year.

The final dividend will be paid on August 1 to shareholders on record on June 20.

Pennon Group Plc. dropped 3.2% to 492.40 pence after the UK-based water and wastewater services provider reported full-year 2025 results.

Revenue increased to £1.05 billion from £907.8 million, net loss widened to £57.9 million from £9.5 million, and diluted loss per share expanded to 16.1 pence from 2.9 pence a year ago.

The company paid a dividend of 31.57 pence per share, compared to 36.67 pence per share in 2024.

“For 2025/26, we are anticipating a return to profitability, with EBITDA expected to increase by 2/3rds through increased revenue and a reset of the cost base,” the company said in a release to investors.

Chemring Group Plc. soared 7.5% to 523.00 pence after the UK-based provider of advanced technology solutions for defense, security, and commercial markets reported results for the six months to April 30.

Revenue increased to £234.3 million from £223.4 million, pre-tax profit jumped to £24.1 million from £22.7 million, and diluted earnings per share rose to 6.8 pence from 6.6 pence a year ago.

The company paid an interim dividend of 2.7 pence per share, compared to 2.6 pence per share in the same period in 2024.

The company posted a record first-half order intake of £488 million and an order book of £1.304 billion, the highest in Chemring’s history.

British American Tobacco Plc. gained 0.4% to 3,357.0 pence after the company released its first-half 2024 trading update.

Revenue declined to £12.34 billion from £13.44 billion, attributable profit jumped to £4.47 billion from £3.94 billion, and diluted earnings per share rose to 200.3 pence from 176.0 pence a year ago.

For the year ending December 2024, revenue edged down to £25.87 billion from £27.28 billion, and profit from operations was £2.74 billion, compared to an operating loss of £15.75 billion a year earlier.

Europe Movers: Tate & Lyle, Volvo Car