European Markets Hovered Near Record Highs, UK Inflation Edged Lower In February

Bridgette Randall
26 Mar, 2025
London

European markets lacked direction ahead of the possible U.S. trade tariffs. 

Benchmark indexes in Frankfurt and Paris declined, but they edged higher in London as investors prepared for the start of the upcoming earnings season in two weeks. 

Market volatility in London was above normal ahead of the release of the Spring Statement from the Chancellor of the Exchequer, Rachel Reeves. 

Investors are hoping that the new administration will focus on cutting expenses by as much as £10 billion and refrain from raising taxes.

Market sentiment in the eurozone has been positive after German lawmakers approved raising the debt limit and setting up a special fund to invest in infrastructure. 

The historic debt reform decision has raised expectations of higher revenue for defense and technology companies in the region, and Germany is expected to spend as much as 500 billion or about 11% of its GDP on improving its aging infrastructure.

On the earnings front, the UK's consumer price inflation edged slightly lower to 2.8% in February from 3.0% in January, according to the report released by the Office for National Statistics. 

 

Europe Indexes and Yields

The DAX index decreased by 0.1% to 23,089.22, the CAC-40 index edged lower 0.2% to 8,090.63, and the FTSE 100 index advanced by 0.2% to 8,678.26.

The yield on 10-year German bonds inched lower to 2.79%, French bonds increased to 3.48%, the UK gilts moved down to 4.73%, and Italian bonds edged higher to 3.89%.

The euro increased to $1.08; the British pound was lower at $1.29; and the U.S. dollar was higher and traded at 88.33 Swiss cents.

Brent crude increased $0.09 to $73.11 a barrel, and the Dutch TTF natural gas was lower by €0.41 to €40.72 per MWh.

 

Europe Stock Movers

Vistry Group PLC declined 6% to 609.0 pence after the UK-based home builder reported a sharp decline in earnings in 2024.

Revenue increased to £3.78 billion from £3.56 billion, profit slumped to £74.5 million from £215.0 million, and diluted earnings per share fell to 21.8 pence from 61.3 pence a year ago.

Total completions increased 7% to 17,225 units from 16,118 units in 2023, with partner-funded completions up 18% to 12,633 units from 10,722 units a year ago, and average selling prices remained firm.

Aroundtown SA decreased 5% to €2.23, and Germany's largest landlord reported a decline of 5% in Funds from Operations to €316 million.

Wacker Neuson SE rose 0.7% to €21.40, and the construction equipment maker reported a 16% decline in revenue in 2024.

Porsche Automobil Holding SE increased 0.5% to €37.89, and the German luxury automaker reported a smaller-than-expected loss of €20 billion. 

Revenue declined to €40.08 billion from €40.53 billion, net income edged down to €3.48 billion from €5.63 billion, and earnings per diluted share fell to €3.94 from €5.66 a year ago.

The company delivered 310,718 vehicles in 2024, compared to 320,221 a year earlier, and launched its second all-electric model, the new Macan.

The company said it plans to continue investing in diversifying its product portfolio and seek opportunities in the defense sector.