Europe's Economic Sentiment Index Jumped to 5-Month High, Swiss GDP Growth Accelerated In 2024

Bridgette Randall
27 Feb, 2025
London

European markets traded in a tight range and hovered near recent highs amid improving market sentiment. 

Benchmark indexes in Frankfurt edged lower, but they in Paris, Milan, and London edged slightly higher. 

The Economic Sentiment Index for the Euro Area rose to a five-month high, the European Commission said in a report today. 

The sentiment indicator increased to 96.3 in February from the upwardly revised 95.3 in January, amid softening pessimism among industrial goods producers. 

On the economic front, France's producer price index declined for the 14th consecutive month, INSEE reported Thursday. 

On a yearly basis, the producer price index decreased 2.1% in January after 3.8% in February.

The Swiss economy expanded in the fourth quarter at a slower annual pace, driven by a rise in net exports, the State Secretariat for Economic Affairs reported Thursday. 

GDP expanded at an annual pace of 1.5%, slower than 1.9% in the previous quarter, after exports rose 7% and imports advanced 2.8%.

For the full year 2024, Swiss GDP accelerated to 1.3% from 0.7% in 2023, but slower than 3% in 2022.

 

Europe Movers 

Automakers were under pressure amid looming U.S. tariff threats and falling sales in China. 

Volkswagen AG decreased 1.5% to €104.35, Renault SA gained 0.7% to €50.0, Stellantis NV declined 1.5% to €12.56, and BMW AG fell 2.7% to €84.56. 

Mercedes-Benz Group advanced 5.5% to €17.0, and the German luxury automaker said it plans to cut jobs in China amid rising local competition. 

Beiersdorf AG rose 3.5% to €131.65 after the parent company of Nivea cream announced a new stock buyback program. 

Nordex SE decreased 1.4% to €12.51, despite the German wind turbine company's full-year 2024 earnings surpassing market expectations. 

Eni SpA decreased 0.6% to €14.19 after the Italian energy company reported weaker-than-expected financial results in the fourth quarter.

AXA SA dropped 1.7% to €37.62 after the French insurance company announced €100 million in losses before taxes and net of reinsurance linked to wildfires in Los Angeles, California.

Engie SA jumped 6% to €17.52 after the French utility revised higher its 2025 outlook. 

Swiss Re AG gained 2.2% to CHF 147.50, and the reinsurance company reported strong results in 2024 and reiterated its current year outlook. 

Rolls Royce Holdings jumped 20% to 757.13 pence, and the aviation and power company upgraded its current year outlook following stronger-than-expected annual earnings. 

WPP PLC dropped 15.5% to 650.40 pence after the UK-based advertising company estimated sales in the current year are likely to be flat or decline.