European Markets Edged Higher Ahead of Monetary Policy Decisions from Central Banks This Week

Bridgette Randall
17 Mar, 2025
London

European markets lacked direction in Monday's trading, but the key indexes stayed above the flatline. 

Benchmark indexes in Frankfurt, Paris, Milan, and London advanced ahead of monetary policy decisions from the U.S., the UK, and Japan. 

The central banks in the U.S. and Japan are likely to hold rates steady, but the elevated tariff tensions are likely to convince policymakers to reevaluate their views on inflation in the near future.

In Europe, the Bank of England is widely expected to hold rates steady at 4.5%, the Swiss National Bank is expected to cut its rate by 25 basis points, but the Swede’s Riksbank is likely to hold rates steady, possibly ending its current easing cycle. 

Investors are also looking ahead to the release of inflation for the Euro Area, Germany, and France.

On the earnings front, investors are looking forward to the results from Audi, Hapag-Lloyd, Fraport, Aeroports de Paris, Bollore, RWE, Salzgitter, RTL Group, TOD’s S.p.A., Trustpilot Group, and JD Wetherspoon plc.

In addition, German lawmakers are likely to approve a constitutional amendment, which will allow the new coalition government to ramp up debt-driven infrastructure spending and exclude additional military spending needed to build up arm production. 

European leaders agreed to increase spending for arms after the U.S. signaled its lack of willingness to provide continued military support and pushed Ukraine to meet a 30-day ceasefire with Russia. 

Russia's president, Vladimir Putin, rejected the U.S.-backed proposal for the ceasefire but showed his willingness to continue diplomatic talks, signaling that the country may be willing to strike a deal in the near future. 

 

Europe Indexes and Yields

The DAX index increased by 0.3% to 23,055.10, the CAC-40 index edged higher 0.4% to 8,058.16, and the FTSE 100 index advanced by 0.1% to 8,643.63. 

The yield on 10-year German bonds inched lower to 2.81%, French bonds decreased to 3.49%, the UK gilts moved down to 4.66%, and Italian bonds edged lower to 3.87%.

The euro increased to $1.09; the British pound was higher at $1.29; and the U.S. dollar was lower and traded at 88.29 Swiss cents.

Brent crude increased $0.69 to $71.27 a barrel, and the Dutch TTF natural gas was lower by €0.50 to €41.74 per MWh.

 

Europe Stock Movers

Nordex SE jumped 3.9% to €16.87 after the wind turbine company received an order for 16 turbines from a wind energy project developer.

Marshalls plc dropped 3.9% to 234.0 pence, and the UK-based roofing and landscaping product company reported an 8% decline in revenue from a year ago in 2024.

Phoenix Group Holdings PLC jumped 9.9% to 574.25 pence, and the UK-based insurance company's adjusted earnings in 2024 surpassed market expectations. 

AstraZeneca plc decreased 0.6% to 11,926.0 pence, and the UK-based pharmaceutical company agreed to acquire Belgian biotech firm EsoBiotec for up to $1 billion.