Market Update
European Markets Lack Direction, Bond Yields Hold Firm
Bridgette Randall
13 May, 2025
London
European markets lacked direction on Tuesday, and investor enthusiasm waned amid worries of prolonged uncertainty about the U.S. trade policy.
Benchmark indexes in Frankfurt, Paris, London, and Milan traded in a tight range as investors awaited earnings from leading chemical and pharmaceutical companies.
Investors turned cautious a day after the U.S. and China announced a preliminary trade negotiation framework and paused the previously announced excessive tariffs for 90 days.
The de-escalation of tensions between China and the U.S. raised hopes that the two largest economies in the world may avert a wider trade war, but investors in Europe remained skeptical.
Between April 2 and 9, the U.S. president announced several tariffs, or import taxes, on all shipments but kept the highest rates for China.
Donald Trump repeatedly threatened to keep sky-high tariffs of as much as 145% on Chinese goods unless China buys more goods from the U.S. and lowers import duties.
Over the weekend, the U.S. backed down from its aggressive stance and agreed to pause the previously announced, but not implemented, for 90 days and keep tariff rates at 30%, as declared on March 4.
European investors worried that incoherent policies and the chaotic nature of the Trump administration may send another shock wave to global financial markets in the months ahead.
In addition, Donald Trump said on Monday he plans to sign an executive order demanding pharmaceutical companies lower drug prices between 30% and 80%.
Europe Indexes and Yields
The DAX index increased by 0.03% to 23,572.57, the CAC-40 index edged lower 0.1% to 7,840.93, and the FTSE 100 index advanced 0.1% to 8,617.76.
The yield on 10-year German bonds inched higher to 2.66%, French bonds increased to 3.33%, UK gilts moved up to 4.66%, and Italian bonds edged higher to 3.68%.
The euro increased to $1.11; the British pound was higher at $1.32; and the U.S. dollar was lower and traded at 84.26 Swiss cents.
Brent crude increased $0.11 to $65.07 a barrel, and the Dutch TTF natural gas was lower by €0.10 to €35.04 per MWh.
Europe Movers
Jenoptik AG dropped 3.7% to €18.74, and the Germany-based photonics company reported weaker-than-expected quarterly results.
The photonics company said profit in the first quarter plunged 35%, and the company guided flat revenue in the current year.
Carl Zeiss Meditec AG increased 0.7% to €62.95, and the German medical technology company reported stable earnings in the first half.
The company reiterated its stable earnings outlook for the fiscal second half but warned of market uncertainty rooted in the U.S. trade policy.
Bayer AG rose 9.6% to €26.38, and the German chemical and crop fertilizer company reported a smaller than expected decline in earnings.
Sales in the first quarter eased 0.2% to €13.74 billion from €13.77 billion, and net income fell to €1.3 billion from €2 billion, and diluted earnings per share declined to €1.32 from €2.04 a year ago.
"We are continuously evaluating the impacts of the current geopolitical developments, especially in relation to potential tariffs from the US government. Based on current calculations of the financial effects, we do not see a need to revise our full-year guidance.
However, there is considerable uncertainty concerning the future impacts of any potential further developments in relation to this issue, as well as with respect to exchange-rate developments," the company said in a statement to investors.
Europe Movers: Carl Zeiss Meditec, Fraport, Jenoptik
Inga Muller
13 May, 2025
Frankfurt
Fraport AG traded flat at €59.55 after the Frankfurt Airport operator reported first-quarter 2025 results.
Revenue slipped to €891.8 million from €939.8 million, net income swung to a loss of €16.3 million from a profit of €16.3 million, and diluted earnings per share swung to a loss of 18 cents from a profit of 18 cents a year ago.
During the quarter, Frankfurt Airport handled 12.4 million passengers, a 0.9% decline compared to the same period a year earlier, the company said in a release to investors.
At around 475,000 tons, Frankfurt airport slightly exceeded the previous year’s cargo tonnage in the quarter, and while traffic with China increased significantly, traffic with the U.S. was below the previous year’s level.
Carl Zeiss Meditec AG soared 3.3% to €62.50 after the German medical technology company reported half-year sales results.
Revenue increased to €1.05 billion from €647.2 million, and EBITA inched up to €113.6 million from €113.2 million a year ago.
“We saw a clear upturn in demand for refractive surgery consumables in China,” said Markus Weber, CEO of the company.
Unfortunately, uncertainties surrounding US trade tariffs and currency risks are currently weighing on the outlook, Weber added in the statement.
The company is maintaining its previous guidance of stable to slightly increasing EBITA for the remainder of the fiscal year.
Jenoptik AG soared 4.2% to €19.45 after the German photonics company reported first-quarter 2025 results.
Revenue declined 4.9% to €243.6 million from €256.1 million, EBIT edged down 35% to €16.9 million from €26.0 million, and earnings per share fell 40.7% to 16 cents from 27 cents a year ago.
The company guided full-year revenue to remain roughly flat at €1.11 billion, the EBITDA margin to be between 18% and 21%, and capital expenditure to be significantly below the prior-year level of €114.6 million.
Europe Movers: Carl Zeiss Meditec, Fraport, Jenoptik
Inga Muller
13 May, 2025
Frankfurt
Fraport AG traded flat at €59.55 after the Frankfurt Airport operator reported first-quarter 2025 results.
Revenue slipped to €891.8 million from €939.8 million, net income swung to a loss of €16.3 million from a profit of €16.3 million, and diluted earnings per share swung to a loss of 18 cents from a profit of 18 cents a year ago.
During the quarter, Frankfurt Airport handled 12.4 million passengers, a 0.9% decline compared to the same period a year earlier, the company said in a release to investors.
At around 475,000 tons, Frankfurt airport slightly exceeded the previous year’s cargo tonnage in the quarter, and while traffic with China increased significantly, traffic with the U.S. was below the previous year’s level.
Carl Zeiss Meditec AG soared 3.3% to €62.50 after the German medical technology company reported half-year sales results.
Revenue increased to €1.05 billion from €647.2 million, and EBITA inched up to €113.6 million from €113.2 million a year ago.
“We saw a clear upturn in demand for refractive surgery consumables in China,” said Markus Weber, CEO of the company.
Unfortunately, uncertainties surrounding US trade tariffs and currency risks are currently weighing on the outlook, Weber added in the statement.
The company is maintaining its previous guidance of stable to slightly increasing EBITA for the remainder of the fiscal year.
Jenoptik AG soared 4.2% to €19.45 after the German photonics company reported first-quarter 2025 results.
Revenue declined 4.9% to €243.6 million from €256.1 million, EBIT edged down 35% to €16.9 million from €26.0 million, and earnings per share fell 40.7% to 16 cents from 27 cents a year ago.
The company guided full-year revenue to remain roughly flat at €1.11 billion, the EBITDA margin to be between 18% and 21%, and capital expenditure to be significantly below the prior-year level of €114.6 million.
U.S. Movers: Monday.com, Simon Property, ZoomInfo
Scott Peters
13 May, 2025
New York City
Monday.com Ltd. eased 0.6% to $277.50 after the Israeli-based project management software service provider reported first-quarter 2025 results.
Revenue increased to $282.25 million from $216.91 million, net income soared to $27.42 million from $7.08 million, and diluted earnings per share rose to 52 cents from 14 cents a year ago.
The company guided second-quarter revenue to be between $292 million and $294 million, an increase of 24% to 25% over the previous year.
For the full year, the software company estimated revenue to be between $1.22 billion and $1.23 billion, an increase of 25% to 26% compared to the prior year.
ZoomInfo Technologies Inc. eased 0.3% to $10.28 after the contact and business company reported first-quarter 2025 results.
Revenue declined to $305.7 million from $310.1 million, net income jumped to $26.8 million from $15.1 million, and diluted earnings per share rose to 8 cents from 4 cents a year ago.
The company guided second-quarter revenue to be between $295 million and $298 million, compared to $291.5 million in 2024.
For the full year, the software company raised its forecast and now expects revenue to be between $1.19 billion and $1.20 billion, compared to $1.21 billion in 2024.
During the first quarter, the company repurchased 8,598,274 shares at an average price of $11.05 for a total of $95.0 million.
Simon Property Group Inc. advanced 0.9% to $173.0 after the real estate company reported first-quarter 2025 results.
Revenue climbed to $1.47 billion from $1.44 billion, net income dropped to $413.70 million from $731.70 million, and diluted earnings per share fell to $1.27 from $2.25 a year ago.
The company proposed a quarterly dividend of $1.05 per share payable on June 30 to shareholders on record on June 16.
The real estate company reaffirmed its full-year outlook for funds from operations to be between $12.40 and $12.65 per diluted share, compared to $12.24 per diluted share in 2024.
Net income per diluted share is estimated to be between $6.67 and $6.92, compared to $7.26 per diluted share a year ago.
U.S. Movers: Monday.com, Simon Property, ZoomInfo
Scott Peters
13 May, 2025
New York City
Monday.com Ltd. eased 0.6% to $277.50 after the Israeli-based project management software service provider reported first-quarter 2025 results.
Revenue increased to $282.25 million from $216.91 million, net income soared to $27.42 million from $7.08 million, and diluted earnings per share rose to 52 cents from 14 cents a year ago.
The company guided second-quarter revenue to be between $292 million and $294 million, an increase of 24% to 25% over the previous year.
For the full year, the software company estimated revenue to be between $1.22 billion and $1.23 billion, an increase of 25% to 26% compared to the prior year.
ZoomInfo Technologies Inc. eased 0.3% to $10.28 after the contact and business company reported first-quarter 2025 results.
Revenue declined to $305.7 million from $310.1 million, net income jumped to $26.8 million from $15.1 million, and diluted earnings per share rose to 8 cents from 4 cents a year ago.
The company guided second-quarter revenue to be between $295 million and $298 million, compared to $291.5 million in 2024.
For the full year, the software company raised its forecast and now expects revenue to be between $1.19 billion and $1.20 billion, compared to $1.21 billion in 2024.
During the first quarter, the company repurchased 8,598,274 shares at an average price of $11.05 for a total of $95.0 million.
Simon Property Group Inc. advanced 0.9% to $173.0 after the real estate company reported first-quarter 2025 results.
Revenue climbed to $1.47 billion from $1.44 billion, net income dropped to $413.70 million from $731.70 million, and diluted earnings per share fell to $1.27 from $2.25 a year ago.
The company proposed a quarterly dividend of $1.05 per share payable on June 30 to shareholders on record on June 16.
The real estate company reaffirmed its full-year outlook for funds from operations to be between $12.40 and $12.65 per diluted share, compared to $12.24 per diluted share in 2024.
Net income per diluted share is estimated to be between $6.67 and $6.92, compared to $7.26 per diluted share a year ago.
Japan Indexes Rebound 2%, Ishiba Reiterates U.S. to Remove Auto Tariffs
Akira Ito
13 May, 2025
Tokyo
Japan's stock market indexes soared following gains in overnight trading on Wall Street after the U.S. and China agreed to de-escalate trade tensions.
The Nikkei 225 Stock Average soared as much as 2%, and the broader Topix index gained more than 1% after the U.S. and China paused sky-high tariffs for 90 days amid ongoing trade talks.
The quick agreement hammered out over the weekend in Switzerland raised hopes that the two sides could work out a longer-term agreement and avoid a global economic slowdown.
Despite the repeated claims by the U.S. president to keep sky-high tariffs on China announced since April 2, the U.S. agreed to lower additional 145% tariffs announced without extracting significant concessions.
China lowered its retaliatory tariffs of 125% on U.S. imports but kept a base rate of 10% for the next 90 days.
For now, the trade tensions have deescalated, but the long-term damage is done, and foreign investors' interest in U.S. dollar-denominated assets is waning.
Prime Minister Shigeru Ishiba emphasized that Japan is not likely to agree on a comprehensive deal with the U.S. unless it includes provisions for the auto sector.
Ishiba urged Washington for the removal of the 25% tariff on automobile imports.
Japan Indexes and Stocks
The Nikkei 225 Stock Average advanced 1.8% to 38,337.11, and the broader Topix index gained 1.3% to 2,778.24.
The U.S. dollar advanced against all major currencies, and the Japanese yen weakened to 147.71.
Semiconductor equipment makers and retailers led gainers in Tokyo trading.
Tokyo Electron jumped 4.8% to ¥23,985.0, Advantest Corp. declined 0.8% to ¥7,245.0, and Disco Corp. gained 2.2% to ¥33,650.0.
Nissan Motor is looking to eliminate as many as 20,000 jobs, or 15% of its global workforce, according to local reports.
Toyota Motor added 3.9% to ¥2,862.0, Honda Motor added 0.7% to ¥2,862.0, Nissan Motor gained 3.1% to ¥357.20, and Suzuki Motor Corp. advanced 4.5% to ¥1,881.0.
Suzuki Motor's Indian subsidiary's exports soared 18% to 330,000 in the fiscal year 2024 ending in March.
But sales in India edged up 0.1% to 1.79 million, accounting for about 55% of its global sales.
Japan Indexes Rebound 2%, Ishiba Reiterates U.S. to Remove Auto Tariffs
Akira Ito
13 May, 2025
Tokyo
Japan's stock market indexes soared following gains in overnight trading on Wall Street after the U.S. and China agreed to de-escalate trade tensions.
The Nikkei 225 Stock Average soared as much as 2%, and the broader Topix index gained more than 1% after the U.S. and China paused sky-high tariffs for 90 days amid ongoing trade talks.
The quick agreement hammered out over the weekend in Switzerland raised hopes that the two sides could work out a longer-term agreement and avoid a global economic slowdown.
Despite the repeated claims by the U.S. president to keep sky-high tariffs on China announced since April 2, the U.S. agreed to lower additional 145% tariffs announced without extracting significant concessions.
China lowered its retaliatory tariffs of 125% on U.S. imports but kept a base rate of 10% for the next 90 days.
For now, the trade tensions have deescalated, but the long-term damage is done, and foreign investors' interest in U.S. dollar-denominated assets is waning.
Prime Minister Shigeru Ishiba emphasized that Japan is not likely to agree on a comprehensive deal with the U.S. unless it includes provisions for the auto sector.
Ishiba urged Washington for the removal of the 25% tariff on automobile imports.
Japan Indexes and Stocks
The Nikkei 225 Stock Average advanced 1.8% to 38,337.11, and the broader Topix index gained 1.3% to 2,778.24.
The U.S. dollar advanced against all major currencies, and the Japanese yen weakened to 147.71.
Semiconductor equipment makers and retailers led gainers in Tokyo trading.
Tokyo Electron jumped 4.8% to ¥23,985.0, Advantest Corp. declined 0.8% to ¥7,245.0, and Disco Corp. gained 2.2% to ¥33,650.0.
Nissan Motor is looking to eliminate as many as 20,000 jobs, or 15% of its global workforce, according to local reports.
Toyota Motor added 3.9% to ¥2,862.0, Honda Motor added 0.7% to ¥2,862.0, Nissan Motor gained 3.1% to ¥357.20, and Suzuki Motor Corp. advanced 4.5% to ¥1,881.0.
Suzuki Motor's Indian subsidiary's exports soared 18% to 330,000 in the fiscal year 2024 ending in March.
But sales in India edged up 0.1% to 1.79 million, accounting for about 55% of its global sales.
China Indexes Erase Monday's Gains After Tariff Uncertainty Weighed
Li Chen
13 May, 2025
Hong Kong
A day after boosting market indexes by 3%, investors took a cautious view of the US-China trade agreement a day after its announcement.
The Hang Seng index fell more than 1.5%, and the mainland-focused CSI 300 index struggled to stay above the flatline as investors reassessed the recently announced temporary pause in sky-high tariffs.
Despite the Monday's market enthusiasm, investors turned cautious and worried about the near-term impact and market uncertainties.
Moreover, investor enthusiasm faded after the forceful language in the joint statement lowered the possibilities of additional stimulus measures from Beijing's policymakers.
China and the U.S. agreed to pause sharply higher tariffs announced, but never implemented, since April 2, according to a joint statement released by both sides on Monday.
The U.S. will keep the additional 10% base tariffs and 20% fentanyl tariffs on select goods, and China will retain 10% base tariffs on all U.S. imports and between 10% and 15% additional tariffs on agriculture and mineral products and certain machinery.
The de-escalation of trade tensions between China and the US calmed market anxieties, raising hopes that a broader and longer-term agreement could be drafted before the ending of the 90-day pause.
Essentially, the U.S. president backed down from his aggressive stance without getting in return substantial concessions, and tariff levels are now set at the level announced on March 4.
Meanwhile, China ramped up its efforts to diversify sources for agriculture and seafood products and expand sourcing to South and Central America.
China Indexes and Stocks
The Hang Seng index declined 1.7% to 23,150.25, and the mainland-focused CSI 300 index inched up 0.02% to 3,891.63.
Investors turned cautious ahead of the release of earnings results this week from Alibaba Group, Tencent Holdings, NetEase, and Meituan, accounting for about 25% of the market capitalization of the Hang Seng Index.
Alibaba Group Holding declined 3.8% to HK $126.20, Tencent Holdings decreased 2% to HK $507.0, NetEase plunged 2.5% to HK $164.70, and Meituan fell 4% to $138.70.
BYD dropped 3.2% to HK $402.20, and BYD Electronic International declined 5.2% to HK $35.75.
China Indexes Erases Monday's Gains After Tariff Uncertainty Weighed
Li Chen
13 May, 2025
Hong Kong
A day after boosting market indexes by 3%, investors took a cautious view of the US-China trade agreement a day after its announcement.
The Hang Seng index fell more than 1.5%, and the mainland-focused CSI 300 index struggled to stay above the flatline as investors reassessed the recently announced temporary pause in sky-high tariffs.
Despite the Monday's market enthusiasm, investors turned cautious and worried about the near-term impact and market uncertainties.
Moreover, investor enthusiasm faded after the forceful language in the joint statement lowered the possibilities of additional stimulus measures from Beijing's policymakers.
China and the U.S. agreed to pause sharply higher tariffs announced, but never implemented, since April 2, according to a joint statement released by both sides on Monday.
The U.S. will keep the additional 10% base tariffs and 20% fentanyl tariffs on select goods, and China will retain 10% base tariffs on all U.S. imports and between 10% and 15% additional tariffs on agriculture and mineral products and certain machinery.
The de-escalation of trade tensions between China and the US calmed market anxieties, raising hopes that a broader and longer-term agreement could be drafted before the ending of the 90-day pause.
Essentially, the U.S. president backed down from his aggressive stance without getting in return substantial concessions, and tariff levels are now set at the level announced on March 4.
Meanwhile, China ramped up its efforts to diversify sources for agriculture and seafood products and expand sourcing to South and Central America.
China Indexes and Stocks
The Hang Seng index declined 1.7% to 23,150.25, and the mainland-focused CSI 300 index inched up 0.02% to 3,891.63.
Investors turned cautious ahead of the release of earnings results this week from Alibaba Group, Tencent Holdings, NetEase, and Meituan, accounting for about 25% of the market capitalization of the Hang Seng Index.
Alibaba Group Holding declined 3.8% to HK $126.20, Tencent Holdings decreased 2% to HK $507.0, NetEase plunged 2.5% to HK $164.70, and Meituan fell 4% to $138.70.
BYD dropped 3.2% to HK $402.20, and BYD Electronic International declined 5.2% to HK $35.75.
U.S. and China Pause Sky-High Tariffs for 90 Days, But U.S. Consumers Will Pay Higher Prices
Barry Adams
12 May, 2025
New York City
Wall Street indexes soared on Monday amid optimism about US-China trade talks.
The S&P 500 index jumped more than 2%, and the Nasdaq Composite advanced nearly 3%, as investors reviewed the preliminary agreement that lacked details.
Over the weekend, trade representatives of the U.S. and China gathered in Switzerland and hammered out a preliminary agreement to pause reciprocal tariffs for 90 days.
The U.S. president launched his global tariff campaign, which placed import taxes on all shipments, and placed the heaviest duties on goods arriving from China.
Chinese Vice Premier He Lifeng and U.S. Secretary of Treasury Scott Bessent agreed to roll back the 145% tariffs announced by Donald Trump and China's retaliatory tariff of 125%.
Both sides claimed a victory and said they have agreed on a trade deal framework, and they are hoping that a wider deal could be worked out over the next three months.
Global financial markets whiplashed after the U.S. president launched his tariff war, targeting China, Japan, Mexico, and Canada.
The S&P 500 index plunged and touched the bear market territory on April 8 after Donald Trump announced additional tariffs targeting China and ramped up his rhetoric.
Despite the tough and shrill tone of Trump's rhetoric, China stood its ground and forced the U.S. president to roll back his sky-high tariff, contrary to his claims in early April.
European markets jumped between 0.6% and 1.4%, following the surge on Wall Street in Monday's trading.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 2.5% to 5,802.49, the Nasdaq Composite edged up 3.3% to 18,527.56, and the Russell 2000 index advanced 3.6% to 2,096.25.
The yield on 2-year Treasury notes edged higher to 4.01%, 10-year Treasury notes increased to 4.46%, and 30-year Treasury bonds advanced to 4.89%.
WTI crude oil increased $2.13 to $63.15 a barrel, and natural gas prices edged lower by $0.11 to $3.68 a thermal unit.
Gold decreased by $80.81 to 3,243.40 an ounce, and silver edged down by $0.04 to $32.67.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 1.25 to 101.59 and traded at a two-year high.
U.S. Stock Movers
Pharmaceutical stocks turned lower after the U.S. president vowed to sign an executive order that could cut prices between "30% and 80%."
Pfizer dropped 0.3% to $22.17, Merck & Company declined 0.7% to $75.52, Eli Lilly dropped 1.9% to $720.0, Novartis AG declined 2.2% to $106.21, and Teva Pharmaceutical Industries declined 0.2% to $16.91.
U.S. and China Pause Sky-High Tariffs for 90 Days, But U.S. Consumers Will Pay Higher Prices
Barry Adams
12 May, 2025
New York City
Wall Street indexes soared on Monday amid optimism about US-China trade talks.
The S&P 500 index jumped more than 2%, and the Nasdaq Composite advanced nearly 3%, as investors reviewed the preliminary agreement that lacked details.
Over the weekend, trade representatives of the U.S. and China gathered in Switzerland and hammered out a preliminary agreement to pause reciprocal tariffs for 90 days.
The U.S. president launched his global tariff campaign, which placed import taxes on all shipments, and placed the heaviest duties on goods arriving from China.
Chinese Vice Premier He Lifeng and U.S. Secretary of Treasury Scott Bessent agreed to roll back the 145% tariffs announced by Donald Trump and China's retaliatory tariff of 125%.
Both sides claimed a victory and said they have agreed on a trade deal framework, and they are hoping that a wider deal could be worked out over the next three months.
Global financial markets whiplashed after the U.S. president launched his tariff war, targeting China, Japan, Mexico, and Canada.
The S&P 500 index plunged and touched the bear market territory on April 8 after Donald Trump announced additional tariffs targeting China and ramped up his rhetoric.
Despite the tough and shrill tone of Trump's rhetoric, China stood its ground and forced the U.S. president to roll back his sky-high tariff, contrary to his claims in early April.
European markets jumped between 0.6% and 1.4%, following the surge on Wall Street in Monday's trading.
U.S. Stock Movers
Pharmaceutical stocks turned lower after the U.S. president vowed to sign an executive order that could cut prices between "30% and 80%."
Pfizer dropped 0.3% to $22.17, Merck & Company declined 0.7% to $75.52, Eli Lilly dropped 1.9% to $720.0, Novartis AG declined 2.2% to $106.21, and Teva Pharmaceutical Industries declined 0.2% to $16.91.
European Markets Advanced as U.S. and China Announce to Halt Sky-High Tariffs for Now
Bridgette Randall
12 May, 2025
London
European markets advanced in Monday's trading, and the U.S. and China announced progress on trade talks.
The U.S. and China agreed to de-escalate trade tensions and announced a pause on tariffs.
U.S. Trade Representative Jamieson Greer announced a pause on sky-high tariffs for 90 days and lowered tariffs to 30% from the proposed 145% rate.
China agreed to lower its tariffs to 10% from 125% for the next three months.
The talks in Geneva followed weeks of tensions and global financial market chaos after the U.S. slapped unilateral country-specific tariffs on all imports, with the heaviest burden on shipments arriving from China.
The two sides issued positive comments after two days of talks ending on late Sunday, but it is not clear what the U.S. and China have agreed upon.
The U.S. and China "have taken important steps to resolve important differences through equal dialogue and consultation," the state news agency Xinhua reported.
Negotiators in Geneva said that the two sides will release a joint statement on early Monday, New York time, and the statement is likely to focus on the trade negotiation framework and set an outline of discussion topics.
Europe Indexes and Yields
The DAX index increased by 1.3% to 23,805.34, the CAC-40 index edged higher 1.1% to 7,828.35, and the FTSE 100 index advanced 0.7% to 8,612.45.
The yield on 10-year German bonds inched higher to 2.63%, French bonds increased to 3.31%, the UK gilts moved up to 4.64%, and Italian bonds edged higher to 3.65%.
The euro decreased to $1.11; the British pound was lower at $1.32; and the U.S. dollar was higher and traded at 83.98 Swiss cents.
Brent crude increased $1.65 to $65.56 a barrel, and the Dutch TTF natural gas was higher by €0.01 to €34.61 per MWh.
Europe Movers
Salzgitter AG declined 4.9% to €20.82, and the German steel manufacturing company reported net income swung to a loss in the first quarter.
Technip Energies NV soared 3% to €31.98, and the French engineering company for the energy and chemical company announced a stock repurchase program.
UniCredit SpA advanced 3.6% to €55.68 after the Italian bank reported better-than-expected earnings.
Revenue increased 2.8% to €6.5 billion from €6.3 billion, net profit edged up 8.3% to €2.8 billion from €2.6 billion, and earnings per share climbed 18.2% to €1.79 from €1.52 a year ago.
Net interest income was down 4.8% to €3.5 billion from the previous quarter, a resilient performance given the fewer calendar days and lower average Euribor in the quarter.
“Trading income stood at €641 million in the quarter, up over 100% versus the prior quarter and up 19.9% versus the prior year,” the company said in a release to investors.
European Markets Advanced as U.S. and China Announce to Halt Sky-High Tariffs for Now
Bridgette Randall
12 May, 2025
London
European markets advanced in Monday's trading, and the U.S. and China announced progress on trade talks.
The U.S. and China agreed to de-escalate trade tensions and announced a pause on tariffs.
U.S. Trade Representative Jamieson Greer announced a pause on sky-high tariffs for 90 days and lowered tariffs to 30% from the proposed 145% rate.
China agreed to lower its tariffs to 10% from 125% for the next three months.
The talks in Geneva followed weeks of tensions and global financial market chaos after the U.S. slapped unilateral country-specific tariffs on all imports, with the heaviest burden on shipments arriving from China.
The two sides issued positive comments after two days of talks ending on late Sunday, but it is not clear what the U.S. and China have agreed upon.
The U.S. and China "have taken important steps to resolve important differences through equal dialogue and consultation," the state news agency Xinhua reported.
Negotiators in Geneva said that the two sides will release a joint statement on early Monday, New York time, and the statement is likely to focus on the trade negotiation framework and set an outline of discussion topics.
Europe Indexes and Yields
The DAX index increased by 1.3% to 23,805.34, the CAC-40 index edged higher 1.1% to 7,828.35, and the FTSE 100 index advanced 0.7% to 8,612.45.
The yield on 10-year German bonds inched higher to 2.63%, French bonds increased to 3.31%, the UK gilts moved up to 4.64%, and Italian bonds edged higher to 3.65%.
The euro decreased to $1.11; the British pound was lower at $1.32; and the U.S. dollar was higher and traded at 83.98 Swiss cents.
Brent crude increased $1.65 to $65.56 a barrel, and the Dutch TTF natural gas was higher by €0.01 to €34.61 per MWh.
Europe Movers
Salzgitter AG declined 4.9% to €20.82, and the German steel manufacturing company reported net income swung to a loss in the first quarter.
Technip Energies NV soared 3% to €31.98, and the French engineering company for the energy and chemical company announced a stock repurchase program.
UniCredit SpA advanced 3.6% to €55.68 after the Italian bank reported better-than-expected earnings.
Revenue increased 2.8% to €6.5 billion from €6.3 billion, net profit edged up 8.3% to €2.8 billion from €2.6 billion, and earnings per share climbed 18.2% to €1.79 from €1.52 a year ago.
Net interest income was down 4.8% to €3.5 billion from the previous quarter, a resilient performance given the fewer calendar days and lower average Euribor in the quarter.
“Trading income stood at €641 million in the quarter, up over 100% versus the prior quarter and up 19.9% versus the prior year,” the company said in a release to investors.
Europe Movers: A.P. Moeller, Belgian Post, Evonik Industries, Hochtief, ICA Group, UniCredit
Inga Muller
12 May, 2025
Frankfurt
Belgian Post Group advanced 2.6% to €1.40 after the post delivery company reported first-quarter 2025 results.
Total operating income edged up to €1.12 billion from €993.0 million, net income swung to a loss of €5.9 million from a profit of €41.6 million, and diluted earnings per share swung to a loss of 3 cents from a profit of 21 cents a year ago.
Earnings before tax came in at €5.9 million, compared to €60.2 million in the same quarter a year earlier.
International Consolidated Airlines Group gained 0.7% to €6.70 after the parent company of British Airways and Iberia Airlines reported first-quarter 2025 results.
Revenue climbed 9.6% to €7.04 billion from €6.43 billion, pre-tax earnings swung to a profit of €239 million from a loss of €87 million, and basic earnings per share swung to a profit of €3.7 from a loss of 1 cent a year ago.
“We remain focused on strengthening our broad portfolio of market-leading brands across our core markets of the North Atlantic, Latin America, and intra-Europe,” the company said in a release to investors.
As of May 6, the aircraft capacity is around 80% booked for the second quarter, with revenue ahead of last year, and 29% booked for the second half, broadly in line with last year, ICA added in the statement.
A.P. Moeller Holding A/S dropped 1.9% to 11,360 krona after the Danish shipping and port terminal operator reported first-quarter 2025 results.
Revenue jumped to $13.32 billion from $12.35 billion, profit surged to $1.16 billion from $177 million, and diluted earnings per share rose to 74 cents from 11 cents a year ago.
In February, the company initiated a share buyback program of up to $2 billion to be executed over a period of 12 months, of which $345 million was executed by the end of the first quarter.
In March, the company paid a dividend of DKK 1,120 per share, of which a withholding tax of approximately $332 million will be paid during the second quarter.
Evonik Industries AG gained 0.4% to €20.08 after the German specialty chemicals company reported first-quarter 2025 results.
Revenue edged down to €3.78 billion from €3.80 billion, net income climbed to €233 million from €156 million, and earnings per share jumped to 50 cents from 33 cents a year ago.
“Better than expected pricing trends in the animal nutrition business supported earnings growth in the first quarter, and this trend should continue at least for the second quarter,“ the company said in a release to investors.
Sales in the nutrition and care segment increased by 12% to €1.01 billion in the first quarter, mainly due to higher sales volumes.
UniCredit Group traded up 3.3% to €55.53 after the Italy-based bank reported first-quarter 2025 results.
Revenue increased 2.8% to €6.5 billion from €6.3 billion, net profit edged up 8.3% to €2.8 billion from €2.6 billion, and earnings per share climbed 18.2% to €1.79 from €1.52 a year ago.
Net interest income was down 4.8% to €3.5 billion from the previous quarter, a resilient performance given the fewer calendar days and lower average Euribor in the quarter.
“Trading income stood at €641 million in the quarter, up over 100% versus the prior quarter and up 19.9% versus the prior year,” the company said in a release to investors.
The bank guided full-year revenue to come up at €23.5 billion, compared to €24.2 billion in 2024, and net profit to be above €9.3 billion, compared to €9.7 billion a year earlier.
Hochtief AG surged 1.9% to €159.60 after the German infrastructure solutions provider reported first-quarter 2025 results.
Sales increased 32% to €8.92 billion from €6.76 billion, profit after tax jumped 131.7% to €307.79 million from €132.84 million, and diluted earnings per share rose 131.1% to €4.09 from €1.77 a year ago.
New orders in the quarter were up 23% to €13.0 billion, and the order backlog rose 20% to €70.2 billion from a year earlier.
The company increased its dividend for 2024 to €5.23 per share from €4.40 per share for 2023.
The engineering company guided full-year operational net profit to be between €680 million and €730 million, an increase of up to 17% compared with last year.
Europe Movers: A.P. Moeller, Belgian Post, Evonik Industries, ICA Group, UniCredit
Inga Muller
12 May, 2025
Frankfurt
Belgian Post Group advanced 2.6% to €1.40 after the post delivery company reported first-quarter 2025 results.
Total operating income edged up to €1.12 billion from €993.0 million, net income swung to a loss of €5.9 million from a profit of €41.6 million, and diluted earnings per share swung to a loss of 3 cents from a profit of 21 cents a year ago.
Earnings before tax came in at €5.9 million, compared to €60.2 million in the same quarter a year earlier.
International Consolidated Airlines Group gained 0.7% to €6.70 after the parent company of British Airways and Iberia Airlines reported first-quarter 2025 results.
Revenue climbed 9.6% to €7.04 billion from €6.43 billion, pre-tax earnings swung to a profit of €239 million from a loss of €87 million, and basic earnings per share swung to a profit of €3.7 from a loss of 1 cent a year ago.
“We remain focused on strengthening our broad portfolio of market-leading brands across our core markets of the North Atlantic, Latin America, and intra-Europe,” the company said in a release to investors.
As of May 6, the aircraft capacity is around 80% booked for the second quarter, with revenue ahead of last year, and 29% booked for the second half, broadly in line with last year, ICA added in the statement.
A.P. Moeller Holding A/S dropped 1.9% to 11,360 krona after the Danish shipping and port terminal operator reported first-quarter 2025 results.
Revenue jumped to $13.32 billion from $12.35 billion, profit surged to $1.16 billion from $177 million, and diluted earnings per share rose to 74 cents from 11 cents a year ago.
In February, the company initiated a share buyback program of up to $2 billion to be executed over a period of 12 months, of which $345 million was executed by the end of the first quarter.
In March, the company paid a dividend of DKK 1,120 per share, of which a withholding tax of approximately $332 million will be paid during the second quarter.
Evonik Industries AG gained 0.4% to €20.08 after the German specialty chemicals company reported first-quarter 2025 results.
Revenue edged down to €3.78 billion from €3.80 billion, net income climbed to €233 million from €156 million, and earnings per share jumped to 50 cents from 33 cents a year ago.
“Better than expected pricing trends in the animal nutrition business supported earnings growth in the first quarter, and this trend should continue at least for the second quarter,“ the company said in a release to investors.
Sales in the nutrition and care segment increased by 12% to €1.01 billion in the first quarter, mainly due to higher sales volumes.
UniCredit Group traded up 3.3% to €55.53 after the Italy-based bank reported first-quarter 2025 results.
Revenue increased 2.8% to €6.5 billion from €6.3 billion, net profit edged up 8.3% to €2.8 billion from €2.6 billion, and earnings per share climbed 18.2% to €1.79 from €1.52 a year ago.
Net interest income was down 4.8% to €3.5 billion from the previous quarter, a resilient performance given the fewer calendar days and lower average Euribor in the quarter.
“Trading income stood at €641 million in the quarter, up over 100% versus the prior quarter and up 19.9% versus the prior year,” the company said in a release to investors.
The bank guided full-year revenue to come up at €23.5 billion, compared to €24.2 billion in 2024, and net profit to be above €9.3 billion, compared to €9.7 billion a year earlier.