European Markets Hovered Near Record Highs; Heineken, Siemens Energy In Focu

Bridgette Randall
12 Feb, 2025
London

Stock market indexes in Europe advanced, and investors reacted to the latest earnings results. 

Benchmark indexes in Frankfurt and London hovered at new record highs, and indexes in Paris and Milan edged higher in active trading.

Investors retained positive bias despite the region's weak macroeconomic outlook as corporate results continue to show improvements. 

However, investors worried that the ongoing slowdown in China's economy and the widening tariff war launched by the U.S. could negatively impact corporate results in 2025.

For now, investors bid up stocks in the hopes that the European Central Bank will deliver additional rate cuts and Chinese leadership will implement previously announced fiscal stimulus measures to revive the property market and economic growth. 

Closer to home, the largest economy in the eurozone, Germany, is struggling to expand its exports amid growing competition from China and tariff headwinds in the U.S. 

Germany's gross domestic product is likely to register less than a 0.5% increase in 2025, as consumers battle with high prices, stagnant wages, and elevated interest rates. 

 

Europe Indexes and Yields

The DAX index increased by 0.34% to 22,112.72, the CAC-40 index edged higher 0.23% to 8,047.42, and the FTSE 100 index advanced by 0.07% to 8,783.89. 

The yield on 10-year German bonds inched higher to 2.44%, French bonds increased to 3.16%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.53%.

The euro increased to $1.04; the British pound was lower at $1.24; and the U.S. dollar was lower and traded at 91.04 Swiss cents.

Brent crude decreased $0.78 to $76.21 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

 

Europe Stock Movers

ABN AMRO Bank NV gained 6% to €17.50 after the Dutch lender's fourth quarter profit surpassed market expectations. 

Banco BPM SpA increased 0.6% to €8.97 after the Italian lender posted strong fourth quarter results and lifted its targeted profit and payout ratio to investors.

Kering SA advanced 4% to €258.10 and extended its two-day gain to over 10% after the Paris-based luxury fashion group reported better-than-expected financial results. 

Heineken NV jumped 12.2% to €76.46 after the Dutch brewing company reported a 7.3% increase in net income and announced a two-year stock repurchase plan. 

The alcoholic beverage company said net profit advanced 7.3% to €2.7 billion, driven by a 1.6% increase in beer sales volume. 

The company said it plans to repurchase its own stock worth €1.5 billion over the next two years.

Siemens Energy advanced 1.3% to €58.0 after the wind turbine and gas and power equipment maker reported a decline in net profit in the fiscal first half, but the order book swelled to €131 billion. 

TeamViewer SE jumped 5.3% to €12.47 after the remote access and support software company said profit in the fourth quarter increased because of an increase in revenue and subscribers. 

Baratt Redrow jumped 4.8% to 458.30 pence after the UK-based home builder estimated annual earnings closer to the upper end of the market estimate. 

Revenue in the fiscal first half ending in December rose 23% to £2.3 billion from £1.9 billion, net profit before tax increased 23% to £117.2 million from £95.2 million, and basic earnings per share decreased 18.3% to 5.8 pence from 7.1 pence a year ago.

The residential construction company completed 6,846 homes, 10.9% higher than 6,171 homes in the corresponding period a year ago. 

The home builder launched a £50 million stock repurchase plan starting in February and ending no later than June 30.