European Markets Extend Weekly Losses to 2%, France's Inflation Holds Steady Below 1%

Inga Muller
28 Mar, 2025
Frankfurt

European markets inched lower in Friday's trading amid growing worries of an intensifying trade war and resurgent inflation. 

Benchmark indexes in Frankfurt and Paris declined, but in London edged higher, as investors feared that the U.S. would expand its import tax to additional industries. 

For the week, the DAX index declined more than 2%, the CAC40 fell 1.7%, and the FTSE 100 edged up by 0.4%.

Investors have been on edge as the Trump administration followed through with its threats and imposed an import tax of 25% on vehicle imports.

The move strikes at the heart of the German industrial base and provides additional headwind to the struggling automotive industry amid rising global competition from the Chinese electric vehicle makers. 

The impact of the newly announced 25% tariffs is unknown, as the industry struggles to understand how the import tax will be calculated and implemented.  

 

Europe Indexes and Yields

The DAX index decreased by 0.6% to 22,537.62, the CAC-40 index edged lower 0.5% to 7,952.61, and the FTSE 100 index advanced by 0.2% to 8,680.02.

The yield on 10-year German bonds inched lower to 2.72%, French bonds decreased to 3.42%, the UK gilts moved down to 4.75%, and Italian bonds edged lower to 3.83%.

The euro decreased to $1.08; the British pound was lower at $1.29; and the U.S. dollar was higher and traded at 88.21 Swiss cents.

Brent crude decreased $0.13 to $73.90 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €41.07 per MWh.

 

Europe Stock Movers 

Ubisoft Entertainment SA increased 8.2% to €14.04 after the Chinese gaming studio and social media site company agreed to take a 25% stake in the company for €1.16 billion.

Deutsche Bank AG decreased 2.2% to €22.38, and the German bank agreed to extend CEO Christian Sewing 's contract to 2029.

The largest German bank also said that its deputy, James von Moltke, who has been chief financial officer since 2017, will leave the company at the end of his term next year.

Volkswagen AG decreased 1.8% to €97.48, Mercedes-Benz Group fell 1.2% to €55.78, and BMW declined 1.8% to €75.84.

For the week, the three leading German automakers fell about 5%.