Market Update
European Markets Extend Weekly Rally to Fourth Consecutive Week
Bridgette Randall
02 May, 2025
London
Stock market indexes in Europe edged higher after investors returned from a one-day holiday amid hopes of the start of trade talks between the U.S. and China.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher and extended weekly gains between 2% and 3% as market sentiment recovered.
Investor sentiment rebounded for the fourth consecutive week in the hopes that the U.S. will extend the pause on tariffs with key trading partners.
Market sentiment was bolstered after banks, financial services providers, and industrial companies reported stronger-than-anticipated earnings in the first quarter.
Closer to home, investors are awaiting the release of the inflation, unemployment, and factory activities index in the eurozone later today.
France's final manufacturing activity index rose to 48.7 in April from 48.5 in the previous month, according to the latest update by S&P Global.
The HCOB Manufacturing PMI index, which tracks private business activities, signaled a continuation of contraction, but the pace of decline was the mildest since the latest downturn, which began in February 2023.
Across the Atlantic, investors are anticipating the release of the nonfarm payroll report, and economists are estimating job growth in April to slow down to about 135,000.
April's jobs report will provide the first look at the impact on the labor market after the U.S. president launched a global tariff war, uprooting the supply chains in place for nearly eight decades and disrupting global financial markets.
Benchmark indexes in Germany, France, Italy, and the UK dropped between 2% and 4% in April and managed to rebound from the worst decline of as much as 10% in early April.
Europe Indexes and Yields
The DAX index increased by 1.3% to 22,790.64, the CAC-40 index edged higher 1.3% to 7,691.32, and the FTSE 100 index advanced by 0.9% to 8,571.81.
The yield on 10-year German bonds inched higher to 2.47%, French bonds increased to 3.19%, the UK gilts moved down to 4.46%, and Italian bonds edged higher to 3.59%.
The euro increased to $1.13; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 82.77 Swiss cents.
Brent crude increased $0.13 to $62.26 a barrel, and the Dutch TTF natural gas was higher by €0.59 to €32.48 per MWh.
Europe Stock Movers
Standard Chartered decreased 0.3% to 1,094.0 pence, and the UK-based bank and financial service provider reported an increase in net income and reiterated its annual outlook.
Shell PLC rose 3.4% to 2,519.0 pence after the energy explorer and retailer reported strong quarterly results and announced a $3.5 billion stock repurchase plan.
Lloyds Banking Group decreased 0.2% to 71.24 pence, and the UK-based financial service provider increased its provision for bad loans amid worries of the negative impact of the U.S.-led trade war.
The parent company of Lloyds Bank, Halifax, and Bank of Scotland reported record mortgage loan business in the quarter, but pre-tax income dropped 7% to £1.5 billion, mainly because of higher impairment charges and costs.
Net revenue in the quarter ending in March increased to 4.4 billion from 4.2 billion, net after-tax profit eased to 1.1 billion from 1.2 billion, and earnings per share were unchanged at 1.7 pence.
Japan's Nikkei 225 Extended Weekly Advance and Erased Tariff-Driven Slump In April
Akira Ito
02 May, 2025
Tokyo
Japan's benchmark indexes in Tokyo traded higher and extended gains for the third week in a row, as investors focused on the latest rate decisions.
The Nikkei 225 Stock Average gained 0.7%, and the broader Topix advanced 0.2% amid a growing belief that the Bank of Japan may pause rate hikes for a while.
The central bank held steady its short-term rates at 0.5% and lowered its estimates of annual economic growth and inflation, citing elevated global trade uncertainties.
The yen weakened to 145.21 against the U.S. dollar as currency traders speculated that interest rates are likely to stay unrevised for the next two policy meetings.
The Nikkei 225 Stock Average and the CSI 300 index extended gains for the third consecutive week and erased most of the losses of the first week in April after China signaled its willingness to engage in trade talks with the U.S.
Chinese officials confirmed that the U.S. has reached out through "several relevant channels" to start trade negotiations, raising hopes of a possible easing of tensions.
Japan's Jobless and Labor Force Participation Rates Expanded in March.
On the economic front, Japan's jobless rate edged up to 2.5% in March from 2.4% in the previous month, the Ministry of Internal Affairs & Communications said Friday.
The number of unemployed increased by 50,000 to 1.73 million, while the number of employed declined by 80,000 to 68.1 million.
The labor force, which includes employed and job seekers, shrank by 50,000 to 69.81 million, and those detached from the labor force rose by 30,000 to 39.94 million.
The labor force participation rate, not adjusted for seasonal factors, rose to 63.3% in March from 62.8% a year ago.
The critically watched jobs-to-applications ratio expanded to 1.26 from 1.24, a five-month low in February.
Japan Indexes and Stocks
The Nikkei 225 Stock Average jumped 0.7% to 36,705.53, and the broader Topix index gained 0.2% to 2,683.61.
Automobile manufacturers led gainers in Friday's trading amid hopes of improving trade tensions between the U.S. and Japan.
Toyota Motor Corp. gained 1.3% to ¥2,785.50, Honda Motor Corp. jumped 1.3% to ¥1,484.0, and Nissan Motor edged down 0.2% to ¥344.70.
Retailers traded higher amid a growing speculation that small- and mid-sized companies will increase wages at a faster rate than inflation.
Fast Retailing Co. increased 1.2% to ¥47,600.0, Isetan Mitsukoshi Holdings decreased 0.3% to ¥1,851.50, and Takashimaya Company declined 1.5% to ¥1,096.50.
Seven & I Holdings rose 2.3% to ¥2,206.50 after the company signed a non-disclosure agreement with Canada-based Alimentation Couche-Tard Inc.
The Canada-based retailer has proposed to acquire the parent company of 7-Eleven and Speedway for $47 billion, which operates 85,000 7-Elevens in 19 countries.
Japan's Nikkei 225 Extended Weekly Advance and Erased Tariff-Driven Slump In April
Akira Ito
02 May, 2025
Tokyo
Japan's benchmark indexes in Tokyo traded higher and extended gains for the third week in a row, as investors focused on the latest rate decisions.
The Nikkei 225 Stock Average gained 0.7%, and the broader Topix advanced 0.2% amid a growing belief that the Bank of Japan may pause rate hikes for a while.
The central bank held steady its short-term rates at 0.5% and lowered its estimates of annual economic growth and inflation, citing elevated global trade uncertainties.
The yen weakened to 145.21 against the U.S. dollar as currency traders speculated that interest rates are likely to stay unrevised for the next two policy meetings.
The Nikkei 225 Stock Average and the CSI 300 index extended gains for the third consecutive week and erased most of the losses of the first week in April after China signaled its willingness to engage in trade talks with the U.S.
Chinese officials confirmed that the U.S. has reached out through "several relevant channels" to start trade negotiations, raising hopes of a possible easing of tensions.
Japan's Jobless and Labor Force Participation Rates Expanded in March.
On the economic front, Japan's jobless rate edged up to 2.5% in March from 2.4% in the previous month, the Ministry of Internal Affairs & Communications said Friday.
The number of unemployed increased by 50,000 to 1.73 million, while the number of employed declined by 80,000 to 68.1 million.
The labor force, which includes employed and job seekers, shrank by 50,000 to 69.81 million, and those detached from the labor force rose by 30,000 to 39.94 million.
The labor force participation rate, not adjusted for seasonal factors, rose to 63.3% in March from 62.8% a year ago.
The critically watched jobs-to-applications ratio expanded to 1.26 from 1.24, a five-month low in February.
Japan Indexes and Stocks
The Nikkei 225 Stock Average jumped 0.7% to 36,705.53, and the broader Topix index gained 0.2% to 2,683.61.
Automobile manufacturers led gainers in Friday's trading amid hopes of improving trade tensions between the U.S. and Japan.
Toyota Motor Corp. gained 1.3% to ¥2,785.50, Honda Motor Corp. jumped 1.3% to ¥1,484.0, and Nissan Motor edged down 0.2% to ¥344.70.
Retailers traded higher amid a growing speculation that small- and mid-sized companies will increase wages at a faster rate than inflation.
Fast Retailing Co. increased 1.2% to ¥47,600.0, Isetan Mitsukoshi Holdings decreased 0.3% to ¥1,851.50, and Takashimaya Company declined 1.5% to ¥1,096.50.
Seven & I Holdings rose 2.3% to ¥2,206.50 after the company signed a non-disclosure agreement with Canada-based Alimentation Couche-Tard Inc.
The Canada-based retailer has proposed to acquire the parent company of 7-Eleven and Speedway for $47 billion, which operates 85,000 7-Elevens in 19 countries.
Microsoft and Meta Power Tech Rally On Wall Street Ahead of Nonfarm Payroll Report
Barry Adams
01 May, 2025
New York City
Stock market indexes on Wall Street advanced after Microsoft and Meta Platforms reported a big jump in earnings.
The S&P 500 index advanced 1%, and the Nasdaq Composite gained 2% after Microsoft and Meta Platforms reported strong quarterly results.
Meta, the parent company of Facebook and WhatsApp, lifted its capital spending to build data centers to power artificial intelligence applications.
The surge in revenue and earnings calmed market anxieties after the two leading companies confirmed rising investment in artificial intelligence infrastructure, despite the ongoing economic disruption brought on by the Trump administration's tariffs.
Nvidia, Qualcomm, and AMD also advanced on the back of the investment plans of Microsoft and Meta Platforms.
Investors are anxiously awaiting the release of nonfarm payroll data on Friday, as market participants are lowering expectations of net new job growth.
The rise in initial weekly jobless claims was in focus as investors looked for the impact of the Trump administration's tariffs.
Seasonally adjusted Initial jobless claims increased to 241,000 for the week ending on April 26, an increase of 18,000 from the previous period, the U.S. Department of Labor reported on Thursday.
The market advance on Wednesday trimmed losses in April, as investors sold stocks after the U.S. president launched his tariff campaign on April 2.
A week later, benchmark indexes rebounded after the Trump administration paused tariffs for 90 days and scaled back on the introduction of steep tariffs on some key sectors and trade partners.
However, market indexes turned lower after Donald Trump launched a vicious attack on the independence of the U.S. Federal Reserve and its chief and attempted to influence monetary policy to his liking.
On April 8, the S&P 500 index plunged nearly 20% from the mid-February high, pushing the widely followed benchmark index into bear market territory.
Over the last week, market sentiment rebounded after Alphabet, the parent company of Google search, reported sharply higher earnings, confirming that tech earnings are likely to increase despite the chaotic presidential administration.
In April, the S&P 500 index declined 0.8%, and the Nasdaq Composite advanced 0.9%.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 1.0% to 5,624.94, the Nasdaq Composite edged up 2.0% to 17,794.71, and the Russell 2000 index was down 0.1% to 1,962.46.
The yield on 2-year Treasury notes edged lower to 3.59%, 10-year Treasury notes decreased to 4.15%, and 30-year Treasury bonds declined to 4.67%.
WTI crude oil decreased $0.32 to $57.88 a barrel, and natural gas prices edged higher by $0.04 to $3.36 a therm. unit.
Gold decreased by $47.82 to $3,224.85 an ounce, and silver edged down by $0.27 to $32.34.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.43 to 99.90, and it traded at the lowest level since April 2022.
U.S. Stock Movers
Microsoft Corp. jumped 8.7% to $429.80, and the software company reported better-than-expected quarterly results and revised higher its outlook.
Meta Platforms Inc. jumped 6.4% to $584.10, and the parent company of Facebook and WhatsApp reported strong quarterly results and revised its capital expenditure to $72 billion from $64 billion.
Nvidia advanced 4.5% to $113.79 after Meta Platforms lifted its capital expenditure to build data centers to process artificial intelligence applications.
Tesla Inc traded up 0.5% to $113.79 after the Wall Street Journal reported that the company's board has initiated a search for a new chief executive, replacing Elon Musk.
The company denied the report and said it is not looking for a new chief executive.
General Motors jumped 3.5% to $46.80, and the vehicle maker lowered its annual earnings outlook in a regulatory filing.
The company revised lower its annual net income attributable to shareholders to between $8.2 billion and $10.1 billion from its previous estimate between $11.2 billion and $12.5 billion.
In the regulatory filing, the company confirmed that Trump's tariffs will hit the company by between $4 billion and $5 billion.
McDonald's Corp. decreased 1.5% to $314.75, and the fast food chain operator reported weaker-than-expected revenue and comparable store sales.
U.S. same-store sales declined 3.6% from a year ago, the largest decline since the second quarter of 2020.
Microsoft and Meta Power Tech Rally On Wall Street Ahead of Nonfarm Payroll Report
Barry Adams
01 May, 2025
New York City
Stock market indexes on Wall Street advanced after Microsoft and Meta Platforms reported a big jump in earnings.
The S&P 500 index advanced 1%, and the Nasdaq Composite gained 2% after Microsoft and Meta Platforms reported strong quarterly results.
Meta, the parent company of Facebook and WhatsApp, lifted its capital spending to build data centers to power artificial intelligence applications.
The surge in revenue and earnings calmed market anxieties after the two leading companies confirmed rising investment in artificial intelligence infrastructure, despite the ongoing economic disruption brought on by the Trump administration's tariffs.
Nvidia, Qualcomm, and AMD also advanced on the back of the investment plans of Microsoft and Meta Platforms.
Investors are anxiously awaiting the release of nonfarm payroll data on Friday, as market participants are lowering expectations of net new job growth.
The rise in initial weekly jobless claims was in focus as investors looked for the impact of the Trump administration's tariffs.
Seasonally adjusted Initial jobless claims increased to 241,000 for the week ending on April 26, an increase of 18,000 from the previous period, the U.S. Department of Labor reported on Thursday.
The market advance on Wednesday trimmed losses in April, as investors sold stocks after the U.S. president launched his tariff campaign on April 2.
A week later, benchmark indexes rebounded after the Trump administration paused tariffs for 90 days and scaled back on the introduction of steep tariffs on some key sectors and trade partners.
However, market indexes turned lower after Donald Trump launched a vicious attack on the independence of the U.S. Federal Reserve and its chief and attempted to influence monetary policy to his liking.
On April 8, the S&P 500 index plunged nearly 20% from the mid-February high, pushing the widely followed benchmark index into bear market territory.
Over the last week, market sentiment rebounded after Alphabet, the parent company of Google search, reported sharply higher earnings, confirming that tech earnings are likely to increase despite the chaotic presidential administration.
In April, the S&P 500 index declined 0.8%, and the Nasdaq Composite advanced 0.9%.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 1.0% to 5,624.94, the Nasdaq Composite edged up 2.0% to 17,794.71, and the Russell 2000 index was down 0.1% to 1,962.46.
The yield on 2-year Treasury notes edged lower to 3.59%, 10-year Treasury notes decreased to 4.15%, and 30-year Treasury bonds declined to 4.67%.
WTI crude oil decreased $0.32 to $57.88 a barrel, and natural gas prices edged higher by $0.04 to $3.36 a therm. unit.
Gold decreased by $47.82 to $3,224.85 an ounce, and silver edged down by $0.27 to $32.34.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.43 to 99.90, and it traded at the lowest level since April 2022.
U.S. Stock Movers
Microsoft Corp. jumped 8.7% to $429.80, and the software company reported better-than-expected quarterly results and revised higher its outlook.
Meta Platforms Inc. jumped 6.4% to $584.10, and the parent company of Facebook and WhatsApp reported strong quarterly results and revised its capital expenditure to $72 billion from $64 billion.
Nvidia advanced 4.5% to $113.79 after Meta Platforms lifted its capital expenditure to build data centers to process artificial intelligence applications.
Tesla Inc traded up 0.5% to $113.79 after the Wall Street Journal reported that the company's board has initiated a search for a new chief executive, replacing Elon Musk.
The company denied the report and said it is not looking for a new chief executive.
General Motors jumped 3.5% to $46.80, and the vehicle maker lowered its annual earnings outlook in a regulatory filing.
The company revised lower its annual net income attributable to shareholders to between $8.2 billion and $10.1 billion from its previous estimate between $11.2 billion and $12.5 billion.
In the regulatory filing, the company confirmed that Trump's tariffs will hit the company by between $4 billion and $5 billion.
McDonald's Corp. decreased 1.5% to $314.75, and the fast food chain operator reported weaker-than-expected revenue and comparable store sales.
U.S. same-store sales declined 3.6% from a year ago, the largest decline since the second quarter of 2020.
Europe Movers: Airbus, Barclays, Société Générale, TotalEnergies, Volkswagen, Whitbread
Inga Muller
01 May, 2025
Frankfurt
Volkswagen AG traded down 2.4% to €95.44 after the German car manufacturer reported a sharp decline in earnings in the first quarter.
Revenue increased to €77.56 billion from €75.46 billion, earnings after tax slumped to €1.83 billion from €3.23 billion, and diluted earnings per share fell to €3.63 from €6.43 a year ago.
“We predict that trends in the markets for passenger cars in the individual regions will be mixed but predominantly positive in 2025,” the company said in a release to investors.
The company anticipates a noticeable increase overall in new registrations in the South American markets in 2025 compared with the previous year.
Strong performance is expected in markets in Central and Eastern Europe, subject to the further development of the Russia-Ukraine conflict.
Volkswagen sold 2.1 million vehicles in the quarter, an increase of 0.9% from a year earlier, with orders for fully electric vehicles rising particularly sharply by 64% and accounting for more than 20% of the total order book.
Unit sales growth in Europe was up 4%; in South America, sales were up 17%, offsetting the 2% decline in North America and the expected 6% decline in China.
The company said the automotive net cash flow for 2025 is expected to be between €2.0 billion and €5.0 billion, including cash outflows for investments and restructuring.
Barclays plc advanced 0.2% to 298.70 pence after the UK-based bank reported first-quarter 2025 results.
Total income jumped to £7.71 billion from £6.95 billion, profit after tax edged up 6% to £1.86 billion from £1.55 billion, and basic earnings per ordinary share rose to 13.0 pence from 10.3 pence a year ago.
Net interest income (NII) edged up to £3.52 billion from £3.07 billion a year earlier.
The bank guided fiscal 2025 net interest income to be greater than £12.5 billion, excluding investment banking and head office, of which Barclays UK NII is to be greater than £7.6 billion.
Société Générale advanced 3.7% to €45.60 after the French bank reported first-quarter 2025 results.
Revenue edged up to €7.08 billion from €6.64 billion, and net income jumped to €1.61 billion from €680 million a year ago.
Revenues of French retail, private banking, and insurance rose 14.1% from the prior year to €2.3 billion.
Net interest income recovered sharply in the quarter to around €1.06 billion, the company said in a release to investors.
TotalEnergies SE declined 3.02% to €50.77 after the French energy company reported first-quarter 2025 results.
Sales edged down to $52.25 billion from $56.28 billion, net income slumped to $3.92 billion from $5.80 billion, and diluted earnings per share fell to $1.68 from $2.40 a year ago.
Hydrocarbon production was 2,558 thousand barrels of oil equivalent per day in the first quarter, an increase of 4% from a year earlier, due to start-ups and ramp-ups in Brazil, Fenix in Argentina, Tyra in Denmark, Anchor in the U.S., and Akpo West in Nigeria.
Production was also favorably impacted by the company’s portfolio effect related to the acquisitions of SapuraOMV in Malaysia and interests in the Eagle Ford shale gas plays in Texas.
On the negative side, there was a minus 1% effect due to lower availability of production facilities, mainly due to planned maintenance, and a minus 2% effect from the natural field declines.
The company proposed a first interim cash dividend of 85 cents per share for fiscal 2025, an increase of 7.6% from a year ago, payable on October 3 to shareholders on record as of October 1.
The payment date for ADS holders is October 22, with an ex-dividend date of September 30.
Airbus SE gained 2.2% to €147.14 after the aviation company reported first-quarter 2025 results.
Revenue edged up 6% to €13.54 billion from €12.83 billion, net income jumped 33% to €793 million from €595 million, and earnings per share rose 33% to €1.01 from 76 cents a year ago.
Gross commercial aircraft orders totaled 280 in the quarter, compared to 170 aircraft a year earlier, with an order backlog amounting to 8,726 commercial aircraft at the end of March.
The company guided fiscal 2025 commercial aircraft deliveries of around 820, adjusted EBIT of around €7.0 billion, and free cash flow before customer financing of around €4.5 billion.
Whitbread plc advanced 2.9% to 2.668 pence after the UK-based hospitality company reported results for the fiscal year 2025 ending in February.
Revenue edged down to £2.92 billion from £2.96 billion, profit declined to £253.7 million from £312.1 million, and diluted earnings per share fell to 140.6 pence from 159.9 pence a year ago.
The company confirmed its expansion activities, as it opened 1,075 new rooms in fiscal 2025, and it aims to open 1,000 to 1,200 rooms in fiscal 2026, accelerating thereafter to reach 98,000 open rooms in the UK and Ireland by fiscal 2030.
“We are on track to deliver more than £2 billion for share buybacks and dividends,” the company said in a release to investors.
The company’s board has proposed a final dividend of 60.6 pence per share, compared to 62.9 pence a year ago, and it plans to launch a £250 million share buyback to be completed over the next twelve months.
The total cash returned to shareholders via dividends and share buybacks in fiscal 2025 was £442 million, compared to £756 million in the previous year.
Europe Movers: Airbus, Barclays, Société Générale, TotalEnergies, Volkswagen, Whitbread
Inga Muller
01 May, 2025
Frankfurt
Volkswagen AG traded down 2.4% to €95.44 after the German car manufacturer reported a sharp decline in earnings in the first quarter.
Revenue increased to €77.56 billion from €75.46 billion, earnings after tax slumped to €1.83 billion from €3.23 billion, and diluted earnings per share fell to €3.63 from €6.43 a year ago.
“We predict that trends in the markets for passenger cars in the individual regions will be mixed but predominantly positive in 2025,” the company said in a release to investors.
The company anticipates a noticeable increase overall in new registrations in the South American markets in 2025 compared with the previous year.
Strong performance is expected in markets in Central and Eastern Europe, subject to the further development of the Russia-Ukraine conflict.
Volkswagen sold 2.1 million vehicles in the quarter, an increase of 0.9% from a year earlier, with orders for fully electric vehicles rising particularly sharply by 64% and accounting for more than 20% of the total order book.
Unit sales growth in Europe was up 4%; in South America, sales were up 17%, offsetting the 2% decline in North America and the expected 6% decline in China.
The company said the automotive net cash flow for 2025 is expected to be between €2.0 billion and €5.0 billion, including cash outflows for investments and restructuring.
Barclays plc advanced 0.2% to 298.70 pence after the UK-based bank reported first-quarter 2025 results.
Total income jumped to £7.71 billion from £6.95 billion, profit after tax edged up 6% to £1.86 billion from £1.55 billion, and basic earnings per ordinary share rose to 13.0 pence from 10.3 pence a year ago.
Net interest income (NII) edged up to £3.52 billion from £3.07 billion a year earlier.
The bank guided fiscal 2025 net interest income to be greater than £12.5 billion, excluding investment banking and head office, of which Barclays UK NII is to be greater than £7.6 billion.
Société Générale advanced 3.7% to €45.60 after the French bank reported first-quarter 2025 results.
Revenue edged up to €7.08 billion from €6.64 billion, and net income jumped to €1.61 billion from €680 million a year ago.
Revenues of French retail, private banking, and insurance rose 14.1% from the prior year to €2.3 billion.
Net interest income recovered sharply in the quarter to around €1.06 billion, the company said in a release to investors.
TotalEnergies SE declined 3.02% to €50.77 after the French energy company reported first-quarter 2025 results.
Sales edged down to $52.25 billion from $56.28 billion, net income slumped to $3.92 billion from $5.80 billion, and diluted earnings per share fell to $1.68 from $2.40 a year ago.
Hydrocarbon production was 2,558 thousand barrels of oil equivalent per day in the first quarter, an increase of 4% from a year earlier, due to start-ups and ramp-ups in Brazil, Fenix in Argentina, Tyra in Denmark, Anchor in the U.S., and Akpo West in Nigeria.
Production was also favorably impacted by the company’s portfolio effect related to the acquisitions of SapuraOMV in Malaysia and interests in the Eagle Ford shale gas plays in Texas.
On the negative side, there was a minus 1% effect due to lower availability of production facilities, mainly due to planned maintenance, and a minus 2% effect from the natural field declines.
The company proposed a first interim cash dividend of 85 cents per share for fiscal 2025, an increase of 7.6% from a year ago, payable on October 3 to shareholders on record as of October 1.
The payment date for ADS holders is October 22, with an ex-dividend date of September 30.
Airbus SE gained 2.2% to €147.14 after the aviation company reported first-quarter 2025 results.
Revenue edged up 6% to €13.54 billion from €12.83 billion, net income jumped 33% to €793 million from €595 million, and earnings per share rose 33% to €1.01 from 76 cents a year ago.
Gross commercial aircraft orders totaled 280 in the quarter, compared to 170 aircraft a year earlier, with an order backlog amounting to 8,726 commercial aircraft at the end of March.
The company guided fiscal 2025 commercial aircraft deliveries of around 820, adjusted EBIT of around €7.0 billion, and free cash flow before customer financing of around €4.5 billion.
Whitbread plc advanced 2.9% to 2.668 pence after the UK-based hospitality company reported results for the fiscal year 2025 ending in February.
Revenue edged down to £2.92 billion from £2.96 billion, profit declined to £253.7 million from £312.1 million, and diluted earnings per share fell to 140.6 pence from 159.9 pence a year ago.
The company confirmed its expansion activities, as it opened 1,075 new rooms in fiscal 2025, and it aims to open 1,000 to 1,200 rooms in fiscal 2026, accelerating thereafter to reach 98,000 open rooms in the UK and Ireland by fiscal 2030.
“We are on track to deliver more than £2 billion for share buybacks and dividends,” the company said in a release to investors.
The company’s board has proposed a final dividend of 60.6 pence per share, compared to 62.9 pence a year ago, and it plans to launch a £250 million share buyback to be completed over the next twelve months.
The total cash returned to shareholders via dividends and share buybacks in fiscal 2025 was £442 million, compared to £756 million in the previous year.
U.S. Movers: Humana, Meta Platforms, Microsoft, Public Storage, Qualcomm, Yum! Brands
Scott Peters
01 May, 2025
New York City
Microsoft Corp. advanced 0.3% to $395.26 after the software company reported third-quarter 2025 results.
Revenue increased to $70.07 billion from $61.86 billion, net income jumped to $25.82 billion from $21.94 billion, and diluted earnings per share rose to $3.46 from $2.94 a year ago.
“We delivered a strong quarter with Microsoft Cloud revenue of $42.4 billion, up 20, and up 22% in constant currency, year-over-year, driven by continued demand for our differentiated offerings,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
During the quarter, the company returned $9.7 billion to shareholders in the form of dividends and share repurchases.
Meta Platforms Inc. advanced 5.4% to $578.40 after the parent company of Facebook, Instagram, and WhatsApp reported first-quarter 2025 results.
Revenue edged up 16% to $42.31 billion from $36.45 billion, net income jumped 35% to $16.64 billion from $12.37 billion, and diluted earnings per share rose 37% to $6.43 from $4.71 a year ago.
The company said the number of daily active family members was 3.43 billion on average for March, an increase of 6% from a year earlier.
Meta guided second-quarter revenue to be between $42.5 billion and $45.5 billion, compared to $39.07 in 2024.
The company raised its capital expenditure outlook, as it continues to invest in artificial intelligence to boost its data centers, also expecting an increased cost of infrastructure hardware.
Qualcomm Inc. dropped 5.7% to $140.01 after the wireless technology company reported second-quarter 2025 results.
Revenue edged up to $10.98 billion from $9.39 billion, net income climbed to $2.81 billion from $2.33 billion, and diluted earnings per share rose to $2.52 from $2.02 a year ago.
During the quarter, the company returned $2.7 billion to stockholders in the form of dividends and share repurchases.
Qualcomm guided third-quarter revenue to range between $9.9 billion and $10.7 billion, compared to $9.39 billion in 2024, and GAAP diluted earnings per share to be between $2.14 and $2.34, compared to $2.06 a year ago.
The company estimated non-GAAP diluted earnings per share in the third quarter to range between $2.60 and $2.80, compared to $2.44 a year earlier.
Public Storage Inc. traded flat at $300.43 after the owner and operator of self-storage facilities reported results for the three months ending in March.
Revenue inched up to $934.54 million from $934.03 million, net income slumped to $358.23 million from $459.21 million, and diluted earnings per share declined to $2.04 from $2.60 a year ago.
During the quarter, the company acquired nine self-storage facilities for $141.0 million, and subsequent to March 31, the company had added another five self-storage facilities for $43.2 million.
The company opened three newly developed facilities and completed various expansion projects during the quarter.
Yum! Brands Inc. eased 0.2% to $150.17 after the parent company of KFC, Taco Bell, and Pizza Hut reported first-quarter 2025 results.
Revenue increased 12% to $1.79 billion from $1.60 billion, net income slipped 19% to $253 million from $314 million, and diluted earnings per share fell 18% to 90 cents from $1.10 a year ago.
Global same-store sales in the quarter jumped 3%, led by Taco Bell up 9% and KFC up 2%, while Pizza Hut’s same-store sales declined 2%.
Yum! Brands continued expanding its business, opening 528 new KFC restaurants, 24 new Taco Bell restaurants, and 198 new Pizza Hut restaurants in various locations.
The company proposed a dividend of 71 cents per share, up from 67 cents per share in 2024.
Humana Inc. traded up 0.3% to $263.10 after the health insurance company reported first-quarter 2025 results.
Revenue edged up to $32.11 billion from $29.61 billion, net income surged to $1.24 billion from $741 million, and diluted earnings per share rose to $10.30 from $6.11 a year ago.
The company guided fiscal 2025 earnings per share to be approximately $16.25, compared to $16.21 a year ago, while revising GAAP earnings per share to approximately $14.68 from the previous estimate of $15.88 and compared to $9.98 in 2024.
U.S. Movers: Humana, Meta Platforms, Microsoft, Public Storage, Qualcomm, Yum! Brands
Scott Peters
01 May, 2025
New York City
Microsoft Corp. advanced 0.3% to $395.26 after the software company reported third-quarter 2025 results.
Revenue increased to $70.07 billion from $61.86 billion, net income jumped to $25.82 billion from $21.94 billion, and diluted earnings per share rose to $3.46 from $2.94 a year ago.
“We delivered a strong quarter with Microsoft Cloud revenue of $42.4 billion, up 20, and up 22% in constant currency, year-over-year, driven by continued demand for our differentiated offerings,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
During the quarter, the company returned $9.7 billion to shareholders in the form of dividends and share repurchases.
Meta Platforms Inc. advanced 5.4% to $578.40 after the parent company of Facebook, Instagram, and WhatsApp reported first-quarter 2025 results.
Revenue edged up 16% to $42.31 billion from $36.45 billion, net income jumped 35% to $16.64 billion from $12.37 billion, and diluted earnings per share rose 37% to $6.43 from $4.71 a year ago.
The company said the number of daily active family members was 3.43 billion on average for March, an increase of 6% from a year earlier.
Meta guided second-quarter revenue to be between $42.5 billion and $45.5 billion, compared to $39.07 in 2024.
The company raised its capital expenditure outlook, as it continues to invest in artificial intelligence to boost its data centers, also expecting an increased cost of infrastructure hardware.
Qualcomm Inc. dropped 5.7% to $140.01 after the wireless technology company reported second-quarter 2025 results.
Revenue edged up to $10.98 billion from $9.39 billion, net income climbed to $2.81 billion from $2.33 billion, and diluted earnings per share rose to $2.52 from $2.02 a year ago.
During the quarter, the company returned $2.7 billion to stockholders in the form of dividends and share repurchases.
Qualcomm guided third-quarter revenue to range between $9.9 billion and $10.7 billion, compared to $9.39 billion in 2024, and GAAP diluted earnings per share to be between $2.14 and $2.34, compared to $2.06 a year ago.
The company estimated non-GAAP diluted earnings per share in the third quarter to range between $2.60 and $2.80, compared to $2.44 a year earlier.
Public Storage Inc. traded flat at $300.43 after the owner and operator of self-storage facilities reported results for the three months ending in March.
Revenue inched up to $934.54 million from $934.03 million, net income slumped to $358.23 million from $459.21 million, and diluted earnings per share declined to $2.04 from $2.60 a year ago.
During the quarter, the company acquired nine self-storage facilities for $141.0 million, and subsequent to March 31, the company had added another five self-storage facilities for $43.2 million.
The company opened three newly developed facilities and completed various expansion projects during the quarter.
Yum! Brands Inc. eased 0.2% to $150.17 after the parent company of KFC, Taco Bell, and Pizza Hut reported first-quarter 2025 results.
Revenue increased 12% to $1.79 billion from $1.60 billion, net income slipped 19% to $253 million from $314 million, and diluted earnings per share fell 18% to 90 cents from $1.10 a year ago.
Global same-store sales in the quarter jumped 3%, led by Taco Bell up 9% and KFC up 2%, while Pizza Hut’s same-store sales declined 2%.
Yum! Brands continued expanding its business, opening 528 new KFC restaurants, 24 new Taco Bell restaurants, and 198 new Pizza Hut restaurants in various locations.
The company proposed a dividend of 71 cents per share, up from 67 cents per share in 2024.
Humana Inc. traded up 0.3% to $263.10 after the health insurance company reported first-quarter 2025 results.
Revenue edged up to $32.11 billion from $29.61 billion, net income surged to $1.24 billion from $741 million, and diluted earnings per share rose to $10.30 from $6.11 a year ago.
The company guided fiscal 2025 earnings per share to be approximately $16.25, compared to $16.21 a year ago, while revising GAAP earnings per share to approximately $14.68 from the previous estimate of $15.88 and compared to $9.98 in 2024.
BoJ Held Rates Steady and Slashed Japan's Economic Growth Outlook
Akira Ito
01 May, 2025
Tokyo
Japan's benchmark indexes edged higher, and the yen eased following rate decisions from the Bank of Japan.
The Nikkei 225 Stock Average advanced 0.5%, and the Topix index edged higher 0.2% following a rebound in overnight trading in New York.
The Bank of Japan held its short-term rate steady at 0.5%, as widely anticipated. and the central bank left rates unrevised for the second consecutive meeting.
The yield on 10-year Japanese bonds held near 1.31%, following rate decisions by the Bank of Japan.
The Bank of Japan also lowered its economic growth outlook for the current fiscal year to 0.5% from the previous estimate of 1.0% in January.
Policymakers lowered GDP growth rate for fiscal 2026 to 0.7% from the previous estimate of 1.0%.
Policymakers decided to wait and review the impact of the U.S.-Japan trade talks and high U.S. tariffs on the export-driven Japanese economy.
Investors are worried that high tariffs on Japanese industrial goods and vehicles could dampen corporate sales and lower earnings.
Consumers are reluctant to spend, despite the sustained wage increases over the last three years, according to the latest update from the Japan Chain Store Association.
Consumers have been reluctant to spend because wage increases have lagged inflation for most workers at mid-sized and small businesses, and only employees at large companies have been able to secure wage increases higher than inflation.
Supermarket sales in fiscal 2024 ending in March advanced 1.4% from the previous year but declined on a volume basis.
The increase in sales was largely driven by price increases, and food sales, which account for 70% of chain store sales, increased 3.5%.
Apparel sales decreased 5.3% in the fiscal year because of above-average temperatures and weaker-than-normal demand for winter items.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.5% to 36,241.70, and the Topix index edged up 0.2% to 2,673.46.
Japan's automakers were in focus amid worries that elevated U.S. tariffs and rising global competition from China will shrink global sales.
Toyota Motor increased 0.4% to ¥2,741.0, Honda Motor edged up 0.3% to ¥1,458.50, and Nissan Motor advanced 1% to ¥345.20.
Banks edged higher after the Bank of Japan's rate decisions, and the yen weakened a fraction to 143.30 against the U.S. dollar.
Mitsubishi UFJ Financial Group edged up 0.1% to ¥1,806, Sumitomo Mitsui Financial Group advanced 0.1% to ¥3,400, and Mizuho Financial Group inched higher 0.1% to ¥3,583.
Shipping companies were in focus amid ongoing uncertainties about U.S. trade policy.
Nippon Yusen decreased 0.4% to ¥4,630.0, Mitsui O.S.K. Lines dropped 4% to ¥4,547.0, and Kawasaki Kisen Kaisha fell 0.1% to ¥1,948.50.
Seven & I Holdings Co. Ltd. advanced 2.5% to ¥2,168.50, Fast Retailing edged up 0.3% to ¥47,150.0, Takashimaya gained 1.2% to ¥1,113.0, and Isetan Mitsukoshi Holdings Ltd. increased 1.2% to ¥1,861.0.
BoJ Held Rates Steady and Slashed Japan's Economic Growth Outlook
Akira Ito
01 May, 2025
Tokyo
Japan's benchmark indexes edged higher, and the yen eased following rate decisions from the Bank of Japan.
The Nikkei 225 Stock Average advanced 0.5%, and the Topix index edged higher 0.2% following a rebound in overnight trading in New York.
The Bank of Japan held its short-term rate steady at 0.5%, as widely anticipated. and the central bank left rates unrevised for the second consecutive meeting.
The yield on 10-year Japanese bonds held near 1.31%, following rate decisions by the Bank of Japan.
The Bank of Japan also lowered its economic growth outlook for the current fiscal year to 0.5% from the previous estimate of 1.0% in January.
Policymakers lowered GDP growth rate for fiscal 2026 to 0.7% from the previous estimate of 1.0%.
Policymakers decided to wait and review the impact of the U.S.-Japan trade talks and high U.S. tariffs on the export-driven Japanese economy.
Investors are worried that high tariffs on Japanese industrial goods and vehicles could dampen corporate sales and lower earnings.
Consumers are reluctant to spend, despite the sustained wage increases over the last three years, according to the latest update from the Japan Chain Store Association.
Consumers have been reluctant to spend because wage increases have lagged inflation for most workers at mid-sized and small businesses, and only employees at large companies have been able to secure wage increases higher than inflation.
Supermarket sales in fiscal 2024 ending in March advanced 1.4% from the previous year but declined on a volume basis.
The increase in sales was largely driven by price increases, and food sales, which account for 70% of chain store sales, increased 3.5%.
Apparel sales decreased 5.3% in the fiscal year because of above-average temperatures and weaker-than-normal demand for winter items.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.5% to 36,241.70, and the Topix index edged up 0.2% to 2,673.46.
Japan's automakers were in focus amid worries that elevated U.S. tariffs and rising global competition from China will shrink global sales.
Toyota Motor increased 0.4% to ¥2,741.0, Honda Motor edged up 0.3% to ¥1,458.50, and Nissan Motor advanced 1% to ¥345.20.
Banks edged higher after the Bank of Japan's rate decisions, and the yen weakened a fraction to 143.30 against the U.S. dollar.
Mitsubishi UFJ Financial Group edged up 0.1% to ¥1,806, Sumitomo Mitsui Financial Group advanced 0.1% to ¥3,400, and Mizuho Financial Group inched higher 0.1% to ¥3,583.
Shipping companies were in focus amid ongoing uncertainties about U.S. trade policy.
Nippon Yusen decreased 0.4% to ¥4,630.0, Mitsui O.S.K. Lines dropped 4% to ¥4,547.0, and Kawasaki Kisen Kaisha fell 0.1% to ¥1,948.50.
Seven & I Holdings Co. Ltd. advanced 2.5% to ¥2,168.50, Fast Retailing edged up 0.3% to ¥47,150.0, Takashimaya gained 1.2% to ¥1,113.0, and Isetan Mitsukoshi Holdings Ltd. increased 1.2% to ¥1,861.0.
U.S. GDP Shrank In First Quarter as Businesses Front Load Ahead of Import Taxes
Barry Adams
30 Apr, 2025
New York City
Wall Street lacked direction in early trading as investors reviewed the fresh batch of quarterly earnings and economic data.
The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2%, and investors reviewed the latest updates on GDP growth and a measure of inflation.
On the final trading day of April, the most volatile month on record, investors remained nervous about the constantly changing trade policy of the Trump administration.
Markets plunged on April 2nd after Donald Trump announced country-specific tariffs and later revised tariffs on several key trading partners, adding to market turmoil.
The Trump administration's constant flip-flop about the scope of tariffs and lack of details and specific timetable unnerved global investors.
The market went into near panic mode after Donald Trump ramped up his unprofessional attacks on the autonomy of the Federal Reserve and its chief but changed his tone a few hours later following the sharp intraday market losses.
Despite the constant chaos of the Trump administration, market sentiment has recovered after Alphabet, General Electric, Goldman Sachs, Morgan Stanley, Citigroup, and JPMorgan Chase reported better-than-expected quarterly results.
The S&P 500 index has rebounded from the loss of 10% in early April to a decline of 0.9% before the start of trading on the final day of the month.
U.S. Economy Shrank In First Quarter
On the economic front, the U.S. GDP contracted at a 0.3% annual pace in the first quarter, weighed down by the surge in imports ahead of the Trump tariff implementation.
The U.S. economy sharply reversed its course from an annual pace of increase of 2.4% in the fourth quarter of 2024, after imports soared 41% as businesses stockpiled ahead in anticipation of higher costs.
GDP growth turned negative for the first time since the first quarter of 2022, when the economy shrank 1.0%, according to data available from the U.S. Bureau of Economic Analysis.
U.S. Private Payroll Growth Plunged In April
U.S. private payrolls increased at a sharply slower pace in April, as businesses tackled high tariffs and uncertainty of the Trump administration weighed.
The private sector added 62,000 net new jobs in April, sharply lower than the downwardly revised 147,000 in the previous month, according to the latest update released by ADP.
"Unease is the word of the day. Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data," said ADP's chief economist, Dr. Nela Richardson.
April's nonfarm payroll data is scheduled to be released on Friday, and investors are bracing for a sharp fall in net new hiring across all employers.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 1.9% to 5,456.19, the Nasdaq Composite edged down 2.4% to 17,047.39, and the Russell 2000 index was down 1.8% to 1,940.70.
The yield on 2-year Treasury notes edged lower to 3.64%, 10-year Treasury notes decreased to 4.17%, and 30-year Treasury bonds advanced to 4.66%.
WTI crude oil decreased $0.60 to $59.82 a barrel, and natural gas prices edged lower by $0.08 to $3.30 a thermal unit.
Gold decreased by $13.27 to 3,303.00 an ounce, and silver edged down by $0.32 to $32.61.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.18 to 99.42, and it traded at the lowest level since April 2022.
U.S. Stock Movers
Starbucks Corporation dropped 9.3% to $76.96 after the coffee chain reported results for the latest quarter.
Yum Brands decreased 0.5% to $147.0, and the parent company of Pizza Hut reported mixed quarterly results.
Etsy Inc. rose 1.4% to $46.70 after the online vintage products seller reported better-than-expected revenue in the latest quarter.
Booking Holdings edged up 0.4% to $4,909.23, and the online travel agency reported strong results in the first quarter and estimated "stable growth" in the second quarter.
Snap Inc. plunged 14.2% to $7.80 after the social media platform operator reported a 14% jump in revenue in the first quarter but guided "headwinds" in the current quarter and pulled its outlook amid elevated uncertainty.
First Solar Inc. plunged 12% to $120.90, and the solar technology company reported weaker-than-expected revenue in the first quarter.
The company estimated full-year earnings per share to range between $12.50 and $17.50, lower than the consensus of analyst estimates of $18.14 aggregated by LSEG.
Super Micro Computer plunged 18.4% to $29.48 after the advanced computer server maker issued weaker-than-expected preliminary financial results for the fiscal third quarter.
U.S. GDP Shrank In Frist Quarter as Businesses Front Load Ahead of Import Taxes
Barry Adams
30 Apr, 2025
New York City
Wall Street lacked direction in early trading as investors reviewed the fresh batch of quarterly earnings and economic data.
The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2%, and investors reviewed the latest updates on GDP growth and a measure of inflation.
On the final trading day of April, the most volatile month on record, investors remained nervous about the constantly changing trade policy of the Trump administration.
Markets plunged on April 2nd after Donald Trump announced country-specific tariffs and later revised tariffs on several key trading partners, adding to market turmoil.
The Trump administration's constant flip-flop about the scope of tariffs and lack of details and specific timetable unnerved global investors.
The market went into near panic mode after Donald Trump ramped up his unprofessional attacks on the autonomy of the Federal Reserve and its chief but changed his tone a few hours later following the sharp intraday market losses.
Despite the constant chaos of the Trump administration, market sentiment has recovered after Alphabet, General Electric, Goldman Sachs, Morgan Stanley, Citigroup, and JPMorgan Chase reported better-than-expected quarterly results.
The S&P 500 index has rebounded from the loss of 10% in early April to a decline of 0.9% before the start of trading on the final day of the month.
U.S. Economy Shrank In First Quarter
On the economic front, the U.S. GDP contracted at a 0.3% annual pace in the first quarter, weighed down by the surge in imports ahead of the Trump tariff implementation.
The U.S. economy sharply reversed its course from an annual pace of increase of 2.4% in the fourth quarter of 2024, after imports soared 41% as businesses stockpiled ahead in anticipation of higher costs.
GDP growth turned negative for the first time since the first quarter of 2022, when the economy shrank 1.0%, according to data available from the U.S. Bureau of Economic Analysis.
U.S. Private Payroll Growth Plunged In April
U.S. private payrolls increased at a sharply slower pace in April, as businesses tackled high tariffs and uncertainty of the Trump administration weighed.
The private sector added 62,000 net new jobs in April, sharply lower than the downwardly revised 147,000 in the previous month, according to the latest update released by ADP.
"Unease is the word of the day. Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data," said ADP's chief economist, Dr. Nela Richardson.
April's nonfarm payroll data is scheduled to be released on Friday, and investors are bracing for a sharp fall in net new hiring across all employers.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 1.9% to 5,456.19, the Nasdaq Composite edged down 2.4% to 17,047.39, and the Russell 2000 index was down 1.8% to 1,940.70.
The yield on 2-year Treasury notes edged lower to 3.64%, 10-year Treasury notes decreased to 4.17%, and 30-year Treasury bonds advanced to 4.66%.
WTI crude oil decreased $0.60 to $59.82 a barrel, and natural gas prices edged lower by $0.08 to $3.30 a thermal unit.
Gold decreased by $13.27 to 3,303.00 an ounce, and silver edged down by $0.32 to $32.61.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.18 to 99.42, and it traded at the lowest level since April 2022.
U.S. Stock Movers
Starbucks Corporation dropped 9.3% to $76.96 after the coffee chain reported results for the latest quarter.
Yum Brands decreased 0.5% to $147.0, and the parent company of Pizza Hut reported mixed quarterly results.
Etsy Inc. rose 1.4% to $46.70 after the online vintage products seller reported better-than-expected revenue in the latest quarter.
Booking Holdings edged up 0.4% to $4,909.23, and the online travel agency reported strong results in the first quarter and estimated "stable growth" in the second quarter.
Snap Inc. plunged 14.2% to $7.80 after the social media platform operator reported a 14% jump in revenue in the first quarter but guided "headwinds" in the current quarter and pulled its outlook amid elevated uncertainty.
First Solar Inc. plunged 12% to $120.90, and the solar technology company reported weaker-than-expected revenue in the first quarter.
The company estimated full-year earnings per share to range between $12.50 and $17.50, lower than the consensus of analyst estimates of $18.14 aggregated by LSEG.
Super Micro Computer plunged 18.4% to $29.48 after the advanced computer server maker issued weaker-than-expected preliminary financial results for the fiscal third quarter.
Eurozone GDP Growth Accelerated, Germany's Economic Recession Extended to 7th Quarter
Bridgette Randall
30 Apr, 2025
London
European markets advanced in Wednesday's trading as investors reviewed a wave of earnings and GDP data in the region.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher after banks and financial services providers reported sharply higher earnings.
Societe Generale, Barclays, UBS, and Adyen NV reported better-than-expected quarterly results, supporting the market advance.
Market sentiment was further bolstered after the Trump administration lowered tariffs on aluminum and steel but retained a 25% tariff on imported automobiles.
On the economic front, Germany, France, and the Eurozone reported mixed growth data.
Germany's Economic Recession Extended to Seventh Consecutive Quarter
Germany's GDP in the first quarter expanded 0.2% from the previous quarter and recovered from a 0.2% contraction in the previous quarter, the Federal Statistical Office reported Wednesday.
However, on an annual basis GDP contracted 0.2%, marking its seventh consecutive quarter of recession.
Stable Economic Growth In France
France's GDP expanded 0.1% in the first quarter, reversing a 0.1% contraction in the fourth quarter, the INSEE reported Wednesday.
Household consumption was flat, and international trade remained a drag on the economic growth in the first quarter.
On an annual basis, France's GDP expanded 0.8%, matching the upwardly revised growth in the fourth quarter.
Eurozone Economic Growth Accelerated In First Quarter
In the first quarter of 2025, seasonally adjusted GDP increased by 0.4% in the euro area and by 0.3% in the EU, compared with the previous quarter, according to a preliminary flash estimate published by Eurostat, the statistical office of the European Union.
On an annual basis, GDP expanded 1.2% in the eurozone and rose 1.4% in the European Union.
Europe Indexes and Yields
The DAX index increased by 0.7% to 22,592.45, the CAC-40 index edged higher by 0.5% to 7,592.10, and the FTSE 100 index declined by 0.02% to 8,461.59.
The yield on 10-year German bonds inched lower to 2.46%, French bonds decreased to 3.19%, UK gilts moved down to 4.44%, and Italian bonds edged lower to 3.58%.
The euro decreased to $1.14; the British pound was lower at $1.34; and the U.S. dollar was higher and traded at 82.50 Swiss cents.
Brent crude decreased $0.99 to $62.28 a barrel, and the Dutch TTF natural gas was lower by €0.14 to €31.68 per MWh.
Europe Movers
UBS Group AG traded flat at CHF 24.97 after the Swiss bank and wealth management company's first-quarter results surpassed market expectations, driven by sharp gains in its investment banking unit.
Revenue slipped to $12.56 billion from $12.74 billion, net profit edged down to $1.69 billion from $1.75 billion, and diluted earnings per share inched down to 51 cents from 52 cents a year ago.
Barclays PLC dropped 0.3% to 297.40 pence after the UK-based bank reported a sharp increase in pre-tax profit, driven by an increase in the investment banking unit.
Revenue increased to £7.7 billion, and pre-tax income advanced 11% to £2.7 billion, driven by a 16% increase in profit in its investment banking unit to £3.87 billion.
Societe Generale NV increased 3.4% to €45.45, and the French bank reported a jump in revenue in the first quarter, driven by a surge in its net interest income.
Operating income in the first quarter soared 69% to €2.14 billion from €1.27 billion, and net income advanced to €1.61 billion from €680 million a year ago, respectively.
Investment banking unit revenue increased by 10%; however, revenue from trading in fixed income and currencies declined 2.4%.
Net interest income soared 28% in the quarter, driven by a surge in mortgage loan volume.
Adyen NV declined 4.8% to €1,378.40 after the Dutch payment processing service provider reported weaker-than-expected quarterly revenue.
Net revenue jumped 22% to €534.7 million from €438.0 million a year ago, driven by strong demand from existing customers, particularly in Europe and North America.
“Unified Commerce continues to show strong momentum with net revenue up 31% year-over-year, fueled by an increasingly diversified customer base across different verticals,” the company said in a release to investors.
During the quarter, processed volume was €314.8 billion, an increase of 6% from the prior year.
Eurozone GDP Growth Accelerated, Germany's Economic Recession Extended to 7th Quarter
Bridgette Randall
30 Apr, 2025
London
European markets advanced in Wednesday's trading as investors reviewed a wave of earnings and GDP data in the region.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher after banks and financial services providers reported sharply higher earnings.
Societe Generale, Barclays, UBS, and Adyen NV reported better-than-expected quarterly results, supporting the market advance.
Market sentiment was further bolstered after the Trump administration lowered tariffs on aluminum and steel but retained a 25% tariff on imported automobiles.
On the economic front, Germany, France, and the Eurozone reported mixed growth data.
Germany's Economic Recession Extended to Seventh Consecutive Quarter
Germany's GDP in the first quarter expanded 0.2% from the previous quarter and recovered from a 0.2% contraction in the previous quarter, the Federal Statistical Office reported Wednesday.
However, on an annual basis GDP contracted 0.2%, marking its seventh consecutive quarter of recession.
Stable Economic Growth In France
France's GDP expanded 0.1% in the first quarter, reversing a 0.1% contraction in the fourth quarter, the INSEE reported Wednesday.
Household consumption was flat, and international trade remained a drag on the economic growth in the first quarter.
On an annual basis, France's GDP expanded 0.8%, matching the upwardly revised growth in the fourth quarter.
Eurozone Economic Growth Accelerated In First Quarter
In the first quarter of 2025, seasonally adjusted GDP increased by 0.4% in the euro area and by 0.3% in the EU, compared with the previous quarter, according to a preliminary flash estimate published by Eurostat, the statistical office of the European Union.
On an annual basis, GDP expanded 1.2% in the eurozone and rose 1.4% in the European Union.
Europe Indexes and Yields
The DAX index increased by 0.7% to 22,592.45, the CAC-40 index edged higher by 0.5% to 7,592.10, and the FTSE 100 index declined by 0.02% to 8,461.59.
The yield on 10-year German bonds inched lower to 2.46%, French bonds decreased to 3.19%, UK gilts moved down to 4.44%, and Italian bonds edged lower to 3.58%.
The euro decreased to $1.14; the British pound was lower at $1.34; and the U.S. dollar was higher and traded at 82.50 Swiss cents.
Brent crude decreased $0.99 to $62.28 a barrel, and the Dutch TTF natural gas was lower by €0.14 to €31.68 per MWh.
Europe Movers
UBS Group AG traded flat at CHF 24.97 after the Swiss bank and wealth management company's first-quarter results surpassed market expectations, driven by sharp gains in its investment banking unit.
Revenue slipped to $12.56 billion from $12.74 billion, net profit edged down to $1.69 billion from $1.75 billion, and diluted earnings per share inched down to 51 cents from 52 cents a year ago.
Barclays PLC dropped 0.3% to 297.40 pence after the UK-based bank reported a sharp increase in pre-tax profit, driven by an increase in the investment banking unit.
Revenue increased to £7.7 billion, and pre-tax income advanced 11% to £2.7 billion, driven by a 16% increase in profit in its investment banking unit to £3.87 billion.
Societe Generale NV increased 3.4% to €45.45, and the French bank reported a jump in revenue in the first quarter, driven by a surge in its net interest income.
Operating income in the first quarter soared 69% to €2.14 billion from €1.27 billion, and net income advanced to €1.61 billion from €680 million a year ago, respectively.
Investment banking unit revenue increased by 10%; however, revenue from trading in fixed income and currencies declined 2.4%.
Net interest income soared 28% in the quarter, driven by a surge in mortgage loan volume.
Adyen NV declined 4.8% to €1,378.40 after the Dutch payment processing service provider reported weaker-than-expected quarterly revenue.
Net revenue jumped 22% to €534.7 million from €438.0 million a year ago, driven by strong demand from existing customers, particularly in Europe and North America.
“Unified Commerce continues to show strong momentum with net revenue up 31% year-over-year, fueled by an increasingly diversified customer base across different verticals,” the company said in a release to investors.
During the quarter, processed volume was €314.8 billion, an increase of 6% from the prior year.