Europe Markets Lack Direction, Eurozone Business Activities Expand In March

Bridgette Randall
24 Mar, 2025
London

European markets lacked direction after the release of business activity surveys, and investors awaited the release of fresh U.S. tariffs.

Benchmark indexes in Frankfurt, Paris, Milan, and London lacked direction after business service activity in the Euro Area, Germany, and France showed mixed results. 

The HCOB Eurozone Composite PMI in March inched up to 50.4 from 50.2 in February, according to the preliminary estimate released by S&P Global.

Any reading above 50 indicates expansion, and below shows contraction.

The business activities expanded for the third consecutive, and rose to the fastest pace since last  August. 

Service sector activities growth eased to a four-month low, and manufacturing activities returned to growth for the first time in two years, and registered its fastest increase since May 2022.  

 

Europe Indexes and Yields

The DAX index increased by 0.5% to 23,014.82, the CAC-40 index edged higher 0.4% to 8,077.46; and the FTSE 100 index advanced by 0.5% to 8,691.76. 

The yield on 10-year German bonds inched higher to 2.77%, French bonds decreased to 3.46%, the UK gilts moved down to 4.67%, and Italian bonds edged lower to 3.81%.

The euro increased to $1.08; the British pound was higher at $1.29; and the U.S. dollar was higher and traded at 88.29 Swiss cents.

Brent crude decreased $0.06 to $72.08 a barrel, and the Dutch TTF natural gas was lower by €0.89 to €41.67 per MWh.

 

Europe Stock Movers

Bayer AG dropped 6.9% to €22.44 after the Georgia sate court ordered the German company company $2.1 billion in a case involving Roundup weed killer. 

Vivendi SE rose 2.8% to €2.83, and the French media company said it lowered its stake in Telecom Italia to 18.4%. 

Plus500 Ltd. gained 0.9% to 2,744.0 pence, and the Israel-based online  derivative trading platform operator agreed to acquire India-based Mehta Equities for $20 million. 

Defense stocks continued to rally as European leaders pledge to increase spending to acquire arms made from the suppliers based in the region. 

BAE System decreased 0.3% to 1,589.50 pence, Rolls Royce Holdings declined 0.1% to 800.0 pence, Rheinmetall AG jumped 2.6% to €1,339.0, MTU Aero Engines gained 0.3% to €343.70, and Safran SA increased 0.8% to €252.40.