Sweden Trimmed Rates Fifth Consecutive Meeting, Spain's GDP Growth Surpassed Expectations

Bridgette Randall
29 Jan, 2025
London

Stock market indexes in Europe advanced, and investors reviewed the latest corporate earnings updates. 

Benchmark indexes in Frankfurt and London advanced, but they struggled to stay above the flatline in Milan and Paris. 

Sweden's central bank lowered its policy rate for the fifth time in a row at the end of its policy meeting today, reflecting the weakening inflationary forces. 

The Riksbank trimmed its benchmark rate by 25 basis points to 2.25%, citing inflation decreasing to 2% and ongoing economic weakness. 

The central bank lowered its rates for the sixth time since May, totaling 175 basis points, and the policy committee signaled one more possible rate cut in the first half. 

Spain's economy expanded at a faster-than-anticipated pace in the fourth quarter, the National Statistics Institute reported Wednesday. 

GDP expanded at an annual pace of 3.5% in the fourth quarter, matching the rate of growth in the previous quarter. 

For the full year 2024, Spain's economy expanded at 3.2%, ahead of its eurozone peers. 

 

Europe Indexes and Yields

The DAX index moved higher by 0.4% to 21,505.42; the CAC-40 index fell 0.4% to 7,865.95; and the FTSE 100 index advanced by 0.02% to 8,535.75. 

The yield on 10-year German bonds inched higher to 2.48%, French bonds declined to 3.28%, the UK gilts moved down to 4.58%, and Italian bonds edged lower to 3.61%.

The euro was flat at $1.04; the British pound was flat at $1.24; and the U.S. dollar was higher and traded at 90.60 Swiss cents.

Brent crude decreased $0.57 to $76.95 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

 

Europe Stock Movers

Logitech gained 0.4% to CHF 82.68 after the Swiss computer accessories maker posted mixed earnings for the third quarter of fiscal year 2025.

Atlas Copco Group plunged 3.5% to 180.40 krona after the Swedish industrial manufacturer posted earnings for the fourth quarter ending in December.

LVMH eased 0.6% to €750.6 after the luxury goods retailer posted a slight revenue decline for the full year 2024 ending in December.

Revenue declined 2% to €84.68 million from €86.15 million; net profit moved down to €12.55 million from €15.17 million a year ago, driven by a 36% plunge in wine and spirits sales.

The company proposed to pay a dividend of €7.50 per share on April 28.

Remy Cointreau SA edged down 2.8% to €58.20 after the French alcohol beverages distributor posted lower earnings for its third quarter ending in December.

Sales in the Americas and Asia-Pacific declined, reflecting tougher market conditions in China, while Southeast Asia sales rebounded.

In the first nine months of 2024-25, the company reported sales of €787.8 million, down 17.8% on an organic basis.

The overall performance includes an organic decline of 21.5% in the third quarter, or 20.6% as reported.

Akzo Nobel NV traded flat at €60.52 after the Dutch paints and performance coatings maker posted mixed earnings for the fourth quarter ending in December.

Tele2 edged up 0.6% to 115.20 krona after the Swedish streaming TV and networking company posted strong earnings for the fourth quarter ending in December.

Lonza Group AG traded flat at CHF594.60 after the Swiss pharmaceutical and nutrition products provider posted mild earnings for the year ending in December.

WH Smith Plc gained 5.7% to 1,258 pence after the British books and travel retailer posted growth for the 21-week period to January 25.

Comparable sales surged 3% in North America, driven by new product categories and additional stores at Orlando. Florida and Portland, Oregon, airports.