Market Update
Caution Prevailed In European Trading Amid Global Trade Uncertainties
Bridgette Randall
22 Apr, 2025
London
Caution Prevailed In European Trading Amid Global Trade Uncertainties
Bridgette Randall
22 Apr, 2025
London
Investors across Europe remained cautious amid elevated trade tension and a lack of meaningful progress in resolving new tariff threats.
Benchmark indexes in Frankfurt, Paris, Milan, and London decreased after investors returned from a long Easter break.
Investors have been on edge amid constantly shifting U.S. trade policy and rapidly rising risks of a U.S. economic recession brought on by a U.S.-led tariff war.
Moreover, the Trump administration's pressure and sharp criticism of the Federal Reserve's policy also raised prospects of political interference and attacks on the autonomy of the central bank.
The Trumps' blame game on the Fed also contributed to the weakness in the U.S. dollar, as investors' confidence was shaken in the safe-haven status of the currency.
Gold surged as much as 0.7% and reached a new intraday high of $3,490.11 as investors looked for safety amid growing economic uncertainty.
Europe Indexes and Yields
The DAX index decreased by 0.6% to 21,074.44, the CAC-40 index edged lower 0.5% to 7,250.84, and the FTSE 100 index advanced by 0.04% to 8,278.43.
The yield on 10-year German bonds inched lower to 2.46%, French bonds decreased to 3.23%, UK gilts moved up to 4.58%, and Italian bonds edged lower to 3.64%.
The euro decreased to $1.15; the British pound was higher at $1.34; and the U.S. dollar was higher and traded at 81.04 Swiss cents.
Brent crude increased $0.58 to $66.84 a barrel, and the Dutch TTF natural gas was higher by €0.01 to €35.38 per MWh.
Europe Movers
Hermes International S.A. dropped 3.2% to €2,287.00, LVMH declined 2.3% to €474.55, and Kering SA fell 0.6% to €163.52.
Volkswagen AG gained 2.1% to €91.42, Mercedes-Benz Group increased 1% to €50.72, BMW AG gained 0.3% to €70.46, and Renault SA advanced 0.7% to €44.09.
UniCredit SpA edged down 0.1% to €48.35, BNP Paribas SA advanced 1.4% to €71.74, Deutsche Bank rose 1.7% to €21.03, and Barclays PLC advanced 0.1% to 277.45 pence.
Europe Movers: Antofagasta, Deliveroo, Hermes, L’Oréal, Rentokil, Sainsbury’s, VAT Group
Inga Muller
22 Apr, 2025
Frankfurt
Hermes International S.A. dropped 3.2% to €2,287.00 despite the French luxury products retailer reporting higher first-quarter 2025 sales.
Revenue increased 8.5% to €4.13 billion from €3.80 billion a year ago, as all geographical areas recorded growth.
“In the medium term, despite the economic, geopolitical, and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates,” the company said in a release to investors.
Rentokil Initial Plc. gained 5% to 350.00 pence after the UK-based pest-control company reported first-quarter sales results.
Total revenue was $1.63 billion, an increase of 1.5% from a year ago.
“Pest control organic revenue was up 0.5%, and pest control services for residential, commercial, and termite customers were down by 0.2% as they continued to be impacted by low inbound lead flow and contract sales,” the company said in a release for investors.
Deliveroo Plc. gained 3.3% to 134.40 pence after the UK-based delivery services provider reported first-quarter sales growth.
Revenue excluding Hong Kong jumped 7% to £518 million from £485 million a year ago.
The company reported a 9% growth in gross transaction volume and a 7% increase in orders compared to the prior year.
Deliveroo guided for fiscal 2025 gross transaction volume growth to be at a high single-digit percentage and adjusted EBITDA between £170 million and £190 million, compared to £129.6 a year ago.
L’Oréal Groupe gained 0.1% to €341.85 after the French cosmetics products maker reported higher sales in the first quarter of 2025.
Sales jumped to €11.73 billion from €11.24 billion a year ago.
Comparable store sales increased by 3.5%, and sales in all divisions grew, led by L’Oréal Luxe.
Fragrances and hair haircare remained the fastest-growing categories.
By region, progress was strongest in emerging markets, while Europe continued to deliver robust growth, the company said in a release to investors.
VAT Group AG dropped 3.1% to CHF 271.20 despite the vacuum valve maker reporting higher sales in the first quarter of 2025.
Net sales surged 38.6% to CHF 275.1 million from CHF 198.5 million a year ago.
The company estimated second-quarter 2025 sales to be between CHF 260 million and CHF 290 million, compared to CHF 251 million in the prior year.
Sainsbury’s gained 3.5% to 256.80 pence after the UK-based food retailer reported fiscal 2024 results ending in March.
Revenue edged up to £32.81 billion from £32.24 billion, profit jumped to £242 million from £137 million, and diluted earnings per share rose to 10.2 pence from 5.7 pence a year ago.
The company estimated retail operating profit for fiscal 2026 to be flat at around £1 billion and retail free cash flow of more than £500 million.
Over the past financial year, the supermarket invested £1 billion in lowering prices and delivered its highest market share gain in more than a decade.
Comparable sales in the fourth quarter increased by 3.7%, excluding fuel, and 2.2% including fuel.
In the same quarter a year ago, comparable sales excluding fuel rose 4.8%, and they were up 2.9% including fuel.
The company proposed a dividend of 9.7 pence per share, up from 9.2 pence a year ago, payable on July 11 to shareholders on record as of June 6.
The total full-year dividend was 13.6 pence per share, an increase of 3.8% from 13.1 pence in 2023-24.
The food retailer plans to buy back at least £200 million of shares during 2025-26.
Antofagasta Plc. traded down 1% to 1,538.50 pence after the mining company released its first-quarter production report.
Copper production was 154,700 tons, a 20% increase from a year ago, driven by increased production at Los Pelambres and Centinela concentrates in Chile.
Gold production was 42,900 ounces, a 29% increase from a year ago, while molybdenum production was up 15% to 3,100 tons.
The company guided for fiscal 2025 copper production to be between 660,000 and 700,000 tons and capital expenditure unchanged at $3.9 billion.
Europe Movers: Antofagasta, Deliveroo, Hermes, L’Oréal, Rentokil, Sainsbury’s, VAT Group
Inga Muller
22 Apr, 2025
Frankfurt
Hermes International S.A. dropped 3.2% to €2,287.00 despite the French luxury products retailer reporting higher first-quarter 2025 sales.
Revenue increased 8.5% to €4.13 billion from €3.80 billion a year ago, as all geographical areas recorded growth.
“In the medium term, despite the economic, geopolitical, and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates,” the company said in a release to investors.
Rentokil Initial Plc. gained 5% to 350.00 pence after the UK-based pest-control company reported first-quarter sales results.
Total revenue was $1.63 billion, an increase of 1.5% from a year ago.
“Pest control organic revenue was up 0.5%, and pest control services for residential, commercial, and termite customers were down by 0.2% as they continued to be impacted by low inbound lead flow and contract sales,” the company said in a release for investors.
Deliveroo Plc. gained 3.3% to 134.40 pence after the UK-based delivery services provider reported first-quarter sales growth.
Revenue excluding Hong Kong jumped 7% to £518 million from £485 million a year ago.
The company reported a 9% growth in gross transaction volume and a 7% increase in orders compared to the prior year.
Deliveroo guided for fiscal 2025 gross transaction volume growth to be at a high single-digit percentage and adjusted EBITDA between £170 million and £190 million, compared to £129.6 a year ago.
L’Oréal Groupe gained 0.1% to €341.85 after the French cosmetics products maker reported higher sales in the first quarter of 2025.
Sales jumped to €11.73 billion from €11.24 billion a year ago.
Comparable store sales increased by 3.5%, and sales in all divisions grew, led by L’Oréal Luxe.
Fragrances and hair haircare remained the fastest-growing categories.
By region, progress was strongest in emerging markets, while Europe continued to deliver robust growth, the company said in a release to investors.
VAT Group AG dropped 3.1% to CHF 271.20 despite the vacuum valve maker reporting higher sales in the first quarter of 2025.
Net sales surged 38.6% to CHF 275.1 million from CHF 198.5 million a year ago.
The company estimated second-quarter 2025 sales to be between CHF 260 million and CHF 290 million, compared to CHF 251 million in the prior year.
Sainsbury’s gained 3.5% to 256.80 pence after the UK-based food retailer reported fiscal 2024 results ending in March.
Revenue edged up to £32.81 billion from £32.24 billion, profit jumped to £242 million from £137 million, and diluted earnings per share rose to 10.2 pence from 5.7 pence a year ago.
The company estimated retail operating profit for fiscal 2026 to be flat at around £1 billion and retail free cash flow of more than £500 million.
Over the past financial year, the supermarket invested £1 billion in lowering prices and delivered its highest market share gain in more than a decade.
Comparable sales in the fourth quarter increased by 3.7%, excluding fuel, and 2.2% including fuel.
In the same quarter a year ago, comparable sales excluding fuel rose 4.8%, and they were up 2.9% including fuel.
The company proposed a dividend of 9.7 pence per share, up from 9.2 pence a year ago, payable on July 11 to shareholders on record as of June 6.
The total full-year dividend was 13.6 pence per share, an increase of 3.8% from 13.1 pence in 2023-24.
The food retailer plans to buy back at least £200 million of shares during 2025-26.
Antofagasta Plc. traded down 1% to 1,538.50 pence after the mining company released its first-quarter production report.
Copper production was 154,700 tons, a 20% increase from a year ago, driven by increased production at Los Pelambres and Centinela concentrates in Chile.
Gold production was 42,900 ounces, a 29% increase from a year ago, while molybdenum production was up 15% to 3,100 tons.
The company guided for fiscal 2025 copper production to be between 660,000 and 700,000 tons and capital expenditure unchanged at $3.9 billion.
Japan Trade Talks Founder Amid Shifting U.S. Demands and Lack of Consistency
Akira Ito
22 Apr, 2025
Tokyo
Stock market indexes in Tokyo declined for the second consecutive session amid lingering global trade uncertainties and the status of the U.S.-Japan trade talks.
The Nikkei 225 Stock Average decreased 0.2%, and the broader TOPIX index edged higher 0.1% in choppy trading.
The yen strengthened to a seven-month high of 140.50 against the U.S. dollar as investors sought safety amid global trade tensions and growing skepticism towards U.S. dollar-denominated assets.
Attention shifted to the Bank of Japan's policy meeting next week, and the central bank is widely anticipated to hold its short-term rates at 0.5%.
The central bank is also likely to lower its annual economic growth outlook in light of rising external risks, driven by the U.S.-led tariffs on Japan's export-heavy economy.
About 40% of listed companies on the Tokyo Stock Exchange are dependent on exports to the U.S. and Europe.
The lack of progress on U.S.-Japan trade talks is also keeping the market sentiment weak, as investors detest policy uncertainty and lack of clarity on future earnings outlook.
Japan Indexes and Stocks
The Nikkei 225 Stock Average declined 0.2% to 34,200.14, and the broader TOPIX index increased 0.1% to 2,531.54.
Export-sensitive companies led the decliners in Tokyo trading as Japan's top trade negotiator, Ryosei Akazawa, returned empty-handed.
Toyota Motor Corp. decreased 0.9% to ¥2,449.50, Honda Motor declined 0.1% to ¥1,381.50, and Nissan Motor fell 0.2% to ¥313.40.
Panasonic Holdings advanced 1.2% to ¥1,528.50, Canon Inc. decreased 0.2% to ¥4,148.0, and Fujitsu fell 1% to ¥2,891.0.
Sumitomo Mitsui Financial Group decreased 0.7% to ¥3,141.0, Mitsubishi UFJ Financial Group fell 1.2% to ¥1,633.0, and Mizuho Financial Group dropped 2% to ¥3,324.0.
Japan Trade Talks Founder Amid Shifting U.S. Demands and Lack of Consistency
Akira Ito
22 Apr, 2025
Tokyo
Stock market indexes in Tokyo declined for the second consecutive session amid lingering global trade uncertainties and the status of the U.S.-Japan trade talks.
The Nikkei 225 Stock Average decreased 0.2%, and the broader TOPIX index edged higher 0.1% in choppy trading.
The yen strengthened to a seven-month high of 140.50 against the U.S. dollar as investors sought safety amid global trade tensions and growing skepticism towards U.S. dollar-denominated assets.
Attention shifted to the Bank of Japan's policy meeting next week, and the central bank is widely anticipated to hold its short-term rates at 0.5%.
The central bank is also likely to lower its annual economic growth outlook in light of rising external risks, driven by the U.S.-led tariffs on Japan's export-heavy economy.
About 40% of listed companies on the Tokyo Stock Exchange are dependent on exports to the U.S. and Europe.
The lack of progress on U.S.-Japan trade talks is also keeping the market sentiment weak, as investors detest policy uncertainty and lack of clarity on future earnings outlook.
Japan Indexes and Stocks
The Nikkei 225 Stock Average declined 0.2% to 34,200.14, and the broader TOPIX index increased 0.1% to 2,531.54.
Export-sensitive companies led the decliners in Tokyo trading as Japan's top trade negotiator, Ryosei Akazawa, returned empty-handed.
Toyota Motor Corp. decreased 0.9% to ¥2,449.50, Honda Motor declined 0.1% to ¥1,381.50, and Nissan Motor fell 0.2% to ¥313.40.
Panasonic Holdings advanced 1.2% to ¥1,528.50, Canon Inc. decreased 0.2% to ¥4,148.0, and Fujitsu fell 1% to ¥2,891.0.
Sumitomo Mitsui Financial Group decreased 0.7% to ¥3,141.0, Mitsubishi UFJ Financial Group fell 1.2% to ¥1,633.0, and Mizuho Financial Group dropped 2% to ¥3,324.0.
China Investors On Hold Ahead of Politburo Meeting
Li Chen
22 Apr, 2025
New York City
Stock market indexes in China and Hong Kong lacked direction after investors returned from a holiday.
The Hang Seng index inched slightly lower, and the CSI 300 index edged higher amid high uncertainty about the U.S. trade policy.
Investors mood was cautious amid elevated trade tensions between the U.S. and China, and foreign investors have been looking for ways to diversify their U.S. dollar-denominated holdings.
Moreover, the U.S. president ramped up attacks on Federal Reserve Chair Jerome Powell and demanded a rate cut, raising the prospect of politicizing the U.S. monetary policy.
The attacks on the Federal Reserve also stoked fears that Donald Trump may fire Fed Chair Powell before the completion of his term in May 2026, raising serious questions about the independence of the institution, the direction of the monetary policy, and the status of the U.S. dollar.
Closer to home, investors shifted their attention to the upcoming meeting of the Politburo and are awaiting the details of the previously announced fiscal stimulus.
Market declines in China and Hong Kong have been limited because of the hopes that the central government will soon announce additional measures to bolster economic growth and minimize the impact of the U.S. tariffs.
China Indexes and Stocks
The Hang Seng index inched lower by 0.03% to 21,387.39, and the CSI 300 index gained 0.03% to 3,786.09.
E-commerce platform operators led decliners in trading after the U.S. imposed a stiff penalty on Chinese shipments to consumers and Hong Kong Post suspended shipments to the U.S.
Meituan declined 6% to HK $128.30, Alibaba Group rose HK $110.10, and Tencent Holdings decreased 0.5% to HK $456.60.
China Investors On Hold Ahead of Politburo Meeting
Li Chen
22 Apr, 2025
New York City
Stock market indexes in China and Hong Kong lacked direction after investors returned from a holiday.
The Hang Seng index inched slightly lower, and the CSI 300 index edged higher amid high uncertainty about the U.S. trade policy.
Investors mood was cautious amid elevated trade tensions between the U.S. and China, and foreign investors have been looking for ways to diversify their U.S. dollar-denominated holdings.
Moreover, the U.S. president ramped up attacks on Federal Reserve Chair Jerome Powell and demanded a rate cut, raising the prospect of politicizing the U.S. monetary policy.
The attacks on the Federal Reserve also stoked fears that Donald Trump may fire Fed Chair Powell before the completion of his term in May 2026, raising serious questions about the independence of the institution, the direction of the monetary policy, and the status of the U.S. dollar.
Closer to home, investors shifted their attention to the upcoming meeting of the Politburo and are awaiting the details of the previously announced fiscal stimulus.
Market declines in China and Hong Kong have been limited because of the hopes that the central government will soon announce additional measures to bolster economic growth and minimize the impact of the U.S. tariffs.
China Indexes and Stocks
The Hang Seng index inched lower by 0.03% to 21,387.39, and the CSI 300 index gained 0.03% to 3,786.09.
E-commerce platform operators led decliners in trading after the U.S. imposed a stiff penalty on Chinese shipments to consumers and Hong Kong Post suspended shipments to the U.S.
Meituan declined 6% to HK $128.30, Alibaba Group rose HK $110.10, and Tencent Holdings decreased 0.5% to HK $456.60.
U.S. Movers: Ally Financial, American Express, Blackstone, Charles Schwab, DR Horton, Netflix, Regions Financial
Scott Peters
18 Apr, 2025
New York City
Charles Schwab Corp. gained 0.2% to $76.29 after the brokerage and advisory services company reported first-quarter 2025 results...
Revenue surged to $5.60 billion from $4.74 billion, net income edged up to $1.80 billion from $1.25 billion, and diluted earnings per share rose to 99 cents from 68 cents a year ago.
The company added $137.7 billion in core net new assets during the quarter, an increase of 44% from a year earlier, bringing the total client assets up 9% to $9.93 trillion.
“New brokerage account openings increased 8% year-over-year to 1.2 million for the quarter, propelling total active brokerage accounts to 37.0 million,” the company said in a release to investors.
The brokerage company increased its quarterly dividend by 8% and repurchased $1.5 billion worth of common stock.
American Express gained 0.3% to $252 after the financial services company reported first-quarter 2025 results.
Revenue climbed 7% to $16.97 billion from $15.80 billion, net income edged up 6% to $2.58 billion from $2.44 billion, and diluted earnings per share rose 9% to $3.64 from $3.33 a year ago.
Consolidated expenses were $12.5 billion, an increase of 10% compared to the first quarter in 2024, as operating expenses increased, while marketing expenses were roughly flat from a year earlier.
Blackstone Inc. inched up 0.01% to $130.40 after the asset management company reported first-quarter 2025 results.
Revenue declined to $3.29 billion from $3.69 billion, net income dropped to $614.85 million from $847.39 million, and diluted earnings per share slipped to 80 cents from $1.11 a year ago.
Total assets under management increased 10% from the prior year to $1.17 trillion, with $61.6 billion of inflows in the quarter and $199.1 billion over the last twelve months.
The company repurchased 0.2 million shares in the quarter and 3.5 million shares over the last twelve months, with a remaining authorization of $1.8 billion at March 31.
Blackstone proposed a quarterly dividend of 93 cents per share, payable on May 5 to shareholders on record as of April 28.
D.R. Horton Inc. rose 2.3% to $124.03 despite the home builder reporting a decline in revenue and earnings in the first quarter.
Revenue declined to $7.73 billion from $9.11 billion, net income edged down to $810.4 million from $1.17 billion, and diluted earnings per share dropped to $2.58 from $3.52 a year ago.
The company repurchased 9.7 million shares for $1.3 billion and announced a new share repurchase authorization of $5.0 billion.
In addition, the home builder paid cash dividends of $125.5 million in the quarter.
The company proposed a quarterly cash dividend of 40 cents per share, payable on May 9 to shareholders on record as of May 2.
D.R. Horton guided fiscal 2025 revenue to be between $33.3 billion and $34.8 billion, compared to $36.8 billion in 2024, and the company expects to sell between 85,000 and 87,000 homes.
The company estimated share repurchases of approximately $4.0 billion and dividend payments of approximately $500 million in fiscal 2025.
Ally Financial Inc. gained 0.4% to $31.77 after the bank holding company reported first-quarter 2025 results.
Revenue edged up to $1.48 billion from $1.47 billion, net income swung to a loss of $253 million from a profit of $115 million, and diluted loss per share was 82 cents compared to a profit of 37 cents a year ago.
The company announced a quarterly dividend of 30 cents per share for the fiscal second quarter, unchanged from a year earlier.
Regions Financial Corp. traded flat at $19.31 after the bank holding company reported first-quarter 2025 results.
Revenue increased to $1.78 billion from $1.75 billion, net income edged up to $490 million from $368 million, and diluted earnings per share rose to 51 cents from 37 cents a year ago.
Netflix surged 3.5% to $1,006.79 after the streaming services provider reported first-quarter 2025 results.
Revenue jumped to $10.54 billion from $9.37 billion, net income edged up to $2.89 billion from $2.33 billion, and diluted earnings per share rose to $6.61 from $5.28 a year ago.
The company guided second-quarter revenue to be $11.03 billion, net income at $3.05 billion, and diluted earnings per share at $7.03.
In comparison, revenue in the second quarter of 2024 was $9.56 billion, net income was $2.15 billion, and diluted earnings per share were $4.88.
Netflix estimated full-year 2025 revenue to be between $43.5 billion and $44.5 billion, compared to $39.00 billion in 2024.
U.S. Movers: Ally Financial, American Express, Blackstone, Charles Schwab, DR Horton, Netflix, Regions Financial
Scott Peters
18 Apr, 2025
New York City
Charles Schwab Corp. gained 0.2% to $76.29 after the brokerage and advisory services company reported first-quarter 2025 results.
Revenue surged to $5.60 billion from $4.74 billion, net income edged up to $1.80 billion from $1.25 billion, and diluted earnings per share rose to 99 cents from 68 cents a year ago.
The company added $137.7 billion in core net new assets during the quarter, an increase of 44% from a year earlier, bringing the total client assets up 9% to $9.93 trillion.
“New brokerage account openings increased 8% year-over-year to 1.2 million for the quarter, propelling total active brokerage accounts to 37.0 million,” the company said in a release to investors.
The brokerage company increased its quarterly dividend by 8% and repurchased $1.5 billion worth of common stock.
American Express gained 0.3% to $252 after the financial services company reported first-quarter 2025 results.
Revenue climbed 7% to $16.97 billion from $15.80 billion, net income edged up 6% to $2.58 billion from $2.44 billion, and diluted earnings per share rose 9% to $3.64 from $3.33 a year ago.
Consolidated expenses were $12.5 billion, an increase of 10% compared to the first quarter in 2024, as operating expenses increased, while marketing expenses were roughly flat from a year earlier.
Blackstone Inc. inched up 0.01% to $130.40 after the asset management company reported first-quarter 2025 results.
Revenue declined to $3.29 billion from $3.69 billion, net income dropped to $614.85 million from $847.39 million, and diluted earnings per share slipped to 80 cents from $1.11 a year ago.
Total assets under management increased 10% from the prior year to $1.17 trillion, with $61.6 billion of inflows in the quarter and $199.1 billion over the last twelve months.
The company repurchased 0.2 million shares in the quarter and 3.5 million shares over the last twelve months, with a remaining authorization of $1.8 billion at March 31.
Blackstone proposed a quarterly dividend of 93 cents per share, payable on May 5 to shareholders on record as of April 28.
D.R. Horton Inc. rose 2.3% to $124.03 despite the home builder reporting a decline in revenue and earnings in the first quarter.
Revenue declined to $7.73 billion from $9.11 billion, net income edged down to $810.4 million from $1.17 billion, and diluted earnings per share dropped to $2.58 from $3.52 a year ago.
The company repurchased 9.7 million shares for $1.3 billion and announced a new share repurchase authorization of $5.0 billion.
In addition, the home builder paid cash dividends of $125.5 million in the quarter.
The company proposed a quarterly cash dividend of 40 cents per share, payable on May 9 to shareholders on record as of May 2.
D.R. Horton guided fiscal 2025 revenue to be between $33.3 billion and $34.8 billion, compared to $36.8 billion in 2024, and the company expects to sell between 85,000 to 87,000 homes.
The company estimated share repurchases of approximately $4.0 billion and dividend payments of approximately $500 million in fiscal 2025.
Ally Financial Inc. gained 0.4% to $31.77 after the bank holding company reported first-quarter 2025 results.
Revenue edged up to $1.48 billion from $1.47 billion, net income swung to a loss of $253 million from a profit of $115 million, and diluted loss per share was 82 cents compared to a profit of 37 cents a year ago.
The company paid a quarterly dividend of 30 cents per share, unchanged from a year earlier, and approved a dividend of 30 cents per share for the second quarter of 2025.
Regions Financial Corp. traded flat at $19.31 after the bank holding company reported first-quarter 2025 results.
Revenue increased to $1.78 billion from $1.75 billion, net income edged up to $490 million from $368 million, and diluted earnings per share rose to 51 cents from 37 cents a year ago.
Netflix surged 3.5% to $1,006.79 after the streaming services provider reported first-quarter 2025 results.
Revenue jumped to $10.54 billion from $9.37 billion, net income edged up to $2.89 billion from $2.33 billion, and diluted earnings per share rose to $6.61 from $5.28 a year ago.
The company guided second-quarter revenue to be $11.03 billion, net income at $3.05 billion, and diluted earnings per share at $7.03.
In comparison, revenue in the second quarter of 2024 was $9.56 billion, net income was $2.15 billion, and diluted earnings per share were $4.88.
Netflix estimated full-year 2025 revenue to be between $43.5 billion and $44.5 billion, compared to $39.00 billion in 2024.
Japan's Indexes Extend Weekly Gains, Consumer Inflation Eased In March
Akira Ito
18 Apr, 2025
Tokyo
Japan's benchmark index advanced and extended gains from the previous session amid hopes that talks between the US and Japan will lower the proposed tariffs.
The Nikkei 225 Stock Average edged up 0.6%, and the broader TOPIX gained 0.8%, as investors prepared for the start of the earnings season next week.
For the week, the Nikkei 225 Stock Average advanced 1%, and the broader TOPIX gained 1.5%, tracking gains on Wall Street.
Tokyo stocks have gyrated, tracking gains on Wall Street amid elevated levels of uncertainty surrounding U.S. trade policy and incoherent and chaotic attempts to reorient global supply chains.
The high levels of the proposed U.S. tariffs, which are import taxes, are now considered a negotiating tool for the Trump administration to extract more concessions from foreign governments and ramp up lobbying contributions from domestic retailers and importers.
Donald J. Trump promoted the tariffs as a way to bring back more manufacturing to domestic shores, but total revenues generated from import taxes are going to pay for tax benefits to the wealthy and to expand the manufacturing sector.
Japan's Consumer Price Inflation Eased In March
On the economic front, consumer price inflation in March eased to 3.6% from 3.7% in the previous month, the Ministry of Internal Affairs and Communications said on Friday.
Food price inflation slowed to 7.4% from 7.6%, electricity inflation eased to 8.7% from 9.0%, and natural gas inflation slowed to 2.4% from 3.4% a year ago, respectively.
Core inflation, which excludes fresh food, accelerated to 3.2% from 3.0%, and core-core inflation, excluding fresh food and energy, accelerated to 2.9% from 2.6%.
The yen traded at 142.32 against the U.S. dollar as traders awaited the outcome of negotiations between Japan and the U.S. amid rising speculation that the Bank of Japan and insurance companies are likely to trim their holdings of U.S. Treasury notes and bonds.
Japan is the largest foreign holder of the U.S. public debt, totaling $1.1 trillion, according to the latest data available from the U.S. Department of the Treasury.
Financial markets in New York, India, Europe, and Hong Kong are closed for public holiday on Friday, and European markets are set to resume trading on Tuesday.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.6% to 34,583.29, and the broader TOPIX index added 0.8% to 2,550.34.
Sumitomo Mitsui Financial Group added 0.8% to ¥3,235.0, Mitsubishi UFJ Financial gained 0.7% to ¥1,692.0, and Mizuho Financial Group advanced 2.1% to ¥3,482.0.
Toyota Motor gained 1.4% to ¥2,533.50, Honda Motor added 0.7% to ¥1,391.50, and Nissan Motor increased 1.3% to ¥319.85.
Japan's Indexes Extend Weekly Gains, Yen Remains In Favor Amid Waning Confidence in U.S. Dollar Assets
Akira Ito
18 Apr, 2025
Tokyo
Japan's benchmark index advanced and extended gains from the previous session amid hopes that talks between the US and Japan will lower the proposed tariffs.
The Nikkei 225 Stock Average edged up 0.6%, and the broader TOPIX gained 0.8%, as investors prepared for the start of the earnings season next week.
For the week, the Nikkei 225 Stock Average advanced 1%, and the broader TOPIX gained 1.5%, tracking gains on Wall Street.
Tokyo stocks have gyrated, tracking gains on Wall Street amid elevated levels of uncertainty surrounding U.S. trade policy and incoherent and chaotic attempts to reorient global supply chains.
The high levels of the proposed U.S. tariffs, which are import taxes, are now considered a negotiating tool for the Trump administration to extract more concessions from foreign governments and ramp up lobbying contributions from domestic retailers and importers.
Donald J. Trump promoted the tariffs as a way to bring back more manufacturing to domestic shores, but total revenues generated from import taxes are going to pay for tax benefits to the wealthy and to expand the manufacturing sector.
Japan's Consumer Price Inflation Eased In March
On the economic front, consumer price inflation in March eased to 3.6% from 3.7% in the previous month, the Ministry of Internal Affairs and Communications said on Friday.
Food price inflation slowed to 7.4% from 7.6%, electricity inflation eased to 8.7% from 9.0%, and natural gas inflation slowed to 2.4% from 3.4% a year ago, respectively.
Core inflation, which excludes fresh food, accelerated to 3.2% from 3.0%, and core-core inflation, excluding fresh food and energy, accelerated to 2.9% from 2.6%.
The yen traded at 142.32 against the U.S. dollar as traders awaited the outcome of negotiations between Japan and the U.S. amid rising speculation that the Bank of Japan and insurance companies are likely to trim their holdings of U.S. Treasury notes and bonds.
Japan is the largest foreign holder of the U.S. public debt, totaling $1.1 trillion, according to the latest data available from the U.S. Department of the Treasury.
Financial markets in New York, India, Europe, and Hong Kong are closed for public holiday on Friday, and European markets are set to resume trading on Tuesday.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.6% to 34,583.29, and the broader TOPIX index added 0.8% to 2,550.34.
Sumitomo Mitsui Financial Group added 0.8% to ¥3,235.0, Mitsubishi UFJ Financial gained 0.7% to ¥1,692.0, and Mizuho Financial Group advanced 2.1% to ¥3,482.0.
Toyota Motor gained 1.4% to ¥2,533.50, Honda Motor added 0.7% to ¥1,391.50, and Nissan Motor increased 1.3% to ¥319.85.
Investors Lower Expectations After Powell Pointed to Rising Risk of Stagflation
Barry Adams
17 Apr, 2025
New York City
Stock market indexes edged higher on the final trading day of the week as traders attempted to recoup some of the steep losses in the previous session.
The S&P 500 index inched up 0.1%, and the Nasdaq Composite edged up 0.2% amid lingering worries linked to the Trump tax and the health of the U.S. economy.
Fed Chair Jerome Powell, before the Economic Club of Chicago, confirmed that a broad swathe of historic tariffs, or import taxes, are likely to revive inflationary forces.
Powell said that tariffs are likely to stoke inflation and slow economic growth, but it is not clear where the central bank needs to focus more.
The Federal Reserve is targeted with a dual mandate of keeping prices stable while maximizing employment.
“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension,” noted Fed Chair Powell in his prepared remarks.
Powell provided no indication where interest rates are heading but stressed that the central bank is "well positioned to wait for greater clarity before considering any adjustments to our policy stance.”
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.2% to 5,288.89, the Nasdaq Composite edged up 0.1% to 16,329.16, and the Russell 2000 index was up 0.1% to 1,865.24.
The yield on 2-year Treasury notes edged higher to 3.79%, 10-year Treasury notes increased to 4.30%, and 30-year Treasury bonds advanced to 4.77%.
WTI crude oil increased $0.95 to $63.40 a barrel, and natural gas prices edged lower by $0.02 to $3.22 a thermal unit.
Gold decreased by $22.78 to 3,327.82 an ounce, and silver edged down by $0.33 to $32.50.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.04 to 99.42, and it traded at the lowest level since April 2022.
U.S. Stock Movers
UnitedHealth Group plunged 19.5% to $472.95 after the health insurance company reported weak earnings and outlook.
The health insurance company reported first-quarter adjusted earnings of $7.29 per share on revenue of $109.58 billion.
Moreover, the company lowered its adjusted annual earnings outlook to between $26.0 and $26.50 per share, far lower than its previous outlook of between $29.50 and $30.
Taiwan Semiconductor Manufacturing Co. Ltd. increased 3% to $156.30 after the advanced semiconductor company reported a surge in earnings in the latest quarter and retained its annual estimates.
TSMC said revenue soared 41.6% to NT$839.25 billion and net income surged 60.3% to NT$361.6 billion.
The company's advanced computing division expanded its share of total revenue by 7% from the previous quarter to 59%, on higher demand for artificial intelligence and 5G applications.
Exports from Taiwan are still facing a U.S. import tax of 10%, and that could rise to 32% after the pause on the country-specific tariff ends in early July.
NVIDIA Corp. edged up 0.2% to $104.66, and the stock rebounded from a loss of 6% in the previous session after the company booked a one-time charge of $5.5 billion because of new restrictions on its exports to China.
Investors Lower Expectations After Powell Pointed at Rising Risk of Stagflation
Barry Adams
17 Apr, 2025
New York City
Stock market indexes edged higher on the final trading day of the week as traders attempted to recoup some of the steep losses in the previous session.
The S&P 500 index inched up 0.1%, and the Nasdaq Composite edged up 0.2% amid lingering worries linked to the Trump tax and the health of the U.S. economy.
Fed Chair Jerome Powell, before the Economic Club of Chicago, confirmed that a broad swathe of historic tariffs, or import taxes, are likely to revive inflationary forces.
Powell said that tariffs are likely to stoke inflation and slow economic growth, but it is not clear where the central bank needs to focus more.
The Federal Reserve is targeted with a dual mandate of keeping prices stable while maximizing employment.
“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension,” noted Fed Chair Powell in his prepared remarks.
Powell provided no indication where interest rates are heading but stressed that the central bank is "well positioned to wait for greater clarity before considering any adjustments to our policy stance.”
U.S. Stock Movers
UnitedHealth Group plunged 19.5% to $472.95 after the health insurance company reported weak earnings and outlook.
The health insurance company reported first-quarter adjusted earnings of $7.29 per share on revenue of $109.58 billion.
Moreover, the company lowered its adjusted annual earnings outlook to between $26.0 and $26.50 per share, far lower than its previous outlook of between $29.50 and $30.
Taiwan Semiconductor Manufacturing Co. Ltd. increased 3% to $156.30 after the advanced semiconductor company reported a surge in earnings in the latest quarter and retained its annual estimates.
TSMC said revenue soared 41.6% to NT$839.25 billion and net income surged 60.3% to NT$361.6 billion.
The company's advanced computing division expanded its share of total revenue by 7% from the previous quarter to 59%, on higher demand for artificial intelligence and 5G applications.
Exports from Taiwan are still facing a U.S. import tax of 10%, and that could rise to 32% after the pause on the country-specific tariff ends in early July.
NVIDIA Corp. edged up 0.2% to $104.66, and the stock rebounded from a loss of 6% in the previous session after the company booked a one-time charge of $5.5 billion because of new restrictions on its exports to China.
Europe Markets Lacked Direction Ahead of Rate Decisions
Bridgette Randall
17 Apr, 2025
London
European markets eased on the final trading day of the holiday-shortened week, and investors looked ahead to rate decisions from the European Central Bank.
Benchmark indexes in Frankfurt, Paris, Milan, and London lacked direction as investors anticipated the sixth consecutive rate cut by the ECB later today.
The ECB is expected to lower its deposit rate by 25 basis points to 2.25% amid subdued inflation and tariff-driven anxieties contributing to the weakness in economic growth.
Investors are also looking ahead to comments from ECB President Christine Lagarde and hope that policymakers will provide greater clarity about the possible impact of the U.S. tariffs on the region's economy.
On the economic front, Germany's producer prices declined in March after rising in the four previous months in a row, the Federal Statistical Office reported Thursday.
The Producer Price Index decreased 0.2%, reversing a 0.7% increase in the previous day, mainly because of the 3.6% increase in energy prices and 4.3% fall in electricity prices.
Investors also reacted to the latest earnings from Hermes, Siemens Energy, ABB, Brunello Cuccinelli, Wise, and Pluxee.
Europe Indexes and Yields
The DAX index decreased by 0.1% to 21,283.11, the CAC-40 index edged lower by 0.3% to 7,305.92, and the FTSE 100 index declined by 0.6% to 8,228.21.
The yield on 10-year German bonds inched higher to 2.52%, French bonds increased to 3.29%, UK gilts moved up to 4.61%, and Italian bonds edged higher to 3.70%.
The euro decreased to $1.14; the British pound was lower at $1.32; and the U.S. dollar was higher and traded at 81.81 Swiss cents.
Brent crude increased $0.40 to $66.25 a barrel, and the Dutch TTF natural gas was higher by €0.29 to €35.68 per MWh.
Europe Movers
Siemens Energy increased 10.4% to €63.74, and the renewable and electric power company reported better-than-expected first-quarter results and raised its outlook for fiscal 2025.
Hermes International declined 1.2% to €2,331.0 after the luxury brand company reported a 7.1% increase in revenue in the first quarter.
Brunello Cuccinelli SpA edged up 0.6% to €97.92, and the Italian luxury products company reported steady growth in the first quarter and reiterated its 10% annual growth outlook.
Revenue surged 10.5% to €341.47 million from €309.09 million a year ago.
Moncler decreased 1.8% to €54.10 after the Italian fashion brand retailer reported first-quarter 2025 revenue results.
Sandvik gained 0.3% to 189.90 krona after the Swedish engineering company reported first quarter 2025 results.
Revenue increased to SEK 29.30 billion from SEK 29.0 billion, profit jumped to SEK 3.74 billion from SEK 1.25 billion, and diluted earnings per share rose to SEK 2.97 from 99 cents a year ago.