European Markets Inch Higher Amid Strong Earnings, US-Ukraine Mineral Deal

Bridgette Randall
26 Feb, 2025
London

European markets advanced in Wednesday's trading as investors reviewed another batch of mostly positive results from leading corporations. 

Benchmark indexes in Frankfurt hovered near record high, and the indexes in Paris, Milan, and London edged higher amid optimism about Russia-Ukraine conflict. 

The U.S. and Ukraine are inching closer to signing a deal that will hand over key revenue from mineral exports to the U.S. in exchange for vague security support and arms shipments. 

The agreement is widely seen in the diplomatic circles as exploitation of weakened Ukraine and plundering of resources, as the early arms shipments were billed as "aid" in defense of the Russian aggression.

Market sentiment in Europe remained positive as investors hoped that the deal could pave the way for tensions to subside in the region, which could lower energy prices and drive inflation lower. 

 

Europe Indexes and Yields

The DAX index increased by 1.1% to 22,651.47, the CAC-40 index edged higher 0.99% to 8,130.63, and the FTSE 100 index advanced by 0.61% to 8,721.97. 

The yield on 10-year German bonds inched lower to 2.44%, French bonds decreased to 3.16%, the UK gilts moved down to 4.49%, and Italian bonds edged lower to 3.49%.

The euro decreased to $1.05; the British pound was lower at $1.26; and the U.S. dollar was higher and traded at 89.47 Swiss cents.

Brent crude decreased $0.13 to $72.99 a barrel, and the Dutch TTF natural gas was lower by €0.62 to €43.33 per MWh.

 

Europe Stock Movers

E.ON increased 2.3% to €12.41, and the energy utility company reported financial results that met investor expectations. 

The company also revised higher its three-year outlook, supporting a bounce in the stock price. 

Adecco Group soared 10% to CHF 25.18, and the Swiss staffing company signaled early signs of global hiring pick up. 

Fresenius SE soared 7.5% to €39.36 after the dialysis service provider's adjusted profit in the fourth quarter surpassed market expectations. 

Deutsche Telekom AG decreased 2.2% to €34.21 after the company's 2025 earnings outlook fell short of some analysts' expectations. 

Munich Re jumped 5.5% to €555.40, and the German reinsurance company reported 2024 net income of €5.7 billion, ahead of the company's estimate of €5.0 billion.

Anheuser-Busch InBev SA jumped 7.6% to €56.42 after the alcoholic beverage company's fourth quarter results were ahead of market expectations. 

Stellantis NV declined 4% to €12.93 after the Italian vehicle company reported a sharp decline in earnings, and the company guided no major improvement in earnings in 2025.