European Markets Attempt to Rebound, Danish Economic Growth Accelerated in Fourth Quarter

Bridgette Randall
20 Feb, 2025
London

European stock market indexes attempted to rebound after falling sharply in the previous session amid growing worries about profitability for the automobile industry and global trade uncertainties. 

Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher in choppy trading as investors reviewed the latest batch of earnings. 

Mercedes Benz Group, Renault, Airbus SE, Accor, Indivior, Aegon, Anglo American, and Schneider Electric were in focus after they reported financial results. 

Investors have retained optimism and bid up stocks in 2025 despite the growing uncertainty related to U.S. economic growth and economic policy and mediocre U.S. presidential administration. 

European companies are looking for ways to tap markets in Brazil, India, China, and the ASEAN region amid rising trade barriers and policy uncertainties in the U.S. 

Closer to home and on the economic front, Germany's producer price inflation slowed to an annual pace of 0.5% in January from 0.8% in the previous month, according to an update from Destatis on Thursday. 

Denmark's economy advanced 1.6% in the fourth quarter, higher than the upwardly revised 1.3% growth in the previous quarter. 

On an annual basis, the Danish economy in the fourth quarter expanded a solid 4.1% following an upwardly revised 3.8% in the previous quarter, Statistics Denmark reported Thursday.

For the full-year 2024, economy expanded at an annual pace of 1.85%, matching the 1.9% increase in 2023. 

 

Europe Indexes and Yields

The DAX index increased by 0.5% to 22,543.39, the CAC-40 index edged higher 0.6% to 8,158.04, and the FTSE 100 index declined by 0.2% to 8,697.46. 

The yield on 10-year German bonds inched higher to 2.55%, French bonds increased to 3.24%, the UK gilts moved up to 4.63%, and Italian bonds edged lower to 3.63%.

The euro increased to $1.04; the British pound was higher at $1.26; and the U.S. dollar was lower and traded at 90.18 Swiss cents.

Brent crude increased $0.13 to $76.22 a barrel, and the Dutch TTF natural gas was higher by €0.49 to €47.55 per MWh.

 

Europe Stock Movers

Airbus SE decreased 1.1% to €167.08 after the aviation company delayed the release of the A350 air freight model to 2027, and the company's results fell short of market expectations.  

Renault SA decreased 2.9% to €49.71, and the French passenger car maker reported a 3.6% increase in operating profit in 2024.

Mercedes-Benz Group dropped 1.8% to €60.06 after the German luxury automaker reported a 41% decline in annual earnings in its car division and announced a new plan to cut costs. 

Schneider Electric SE advanced 5.6% to €260.40, and the French electric equipment maker forecast a larger-than-expected increase in margin in 2025, and the company reported record annual sales and earnings.  

Accor SA fell 2.2% to €47.39 after the French hotel group said net income in 2024 declined to €610 million from €633 million a year ago.

Anglo American plc surged 4.4% to 2,474.0 pence despite the UK-based mining company taking a write-down for its struggling De Beers unit and posting a decline in net income. 

Aegon Ltd. decreased 8.5% to €5.93 after the Dutch insurance company reported weaker-than-expected full-year results.