European Extended Quarterly Gains, Eurozone Inflation Eased In March

Bridgette Randall
01 Apr, 2025
London

European markets advanced for the second day in a row, but investors remained cautious amid the looming U.S. import tax and the widening global trade war. 

Benchmark indexes in Frankfurt, Paris, Milan, and London advanced between 0.5% and 1%, as investors reassess global trade and economic growth outlook amid rising trade tensions with the U.S.

Consumer price inflation in the eurozone slowed for the second consecutive month, driven by the easing of services inflation. 

The annual rate of inflation eased to 2.2% from 2.3% in the previous month, and service inflation slowed to 3.4% from 3.7%, and energy inflation fell to -0.7% from 2.2% in the previous month, respectively.

Core inflation, which excludes volatile food and energy prices, eased to 2.4% from 2.6% in the previous month. 

 

Europe Indexes and Yields

The DAX index increased by 0.8% to 22,342.74, the CAC-40 index edged higher 0.5% to 7,828.90, and the FTSE 100 index advanced by 0.6% to 8,631.81.

In the first quarter, the DAX index soared 12%, the CAC-40 index advanced 6.2%, and the FTSE 100 index increased 4.2%. 

The yield on 10-year German bonds inched lower to 2.70%, French bonds decreased to 3.41%, the UK gilts moved down to 4.63%, and Italian bonds edged lower to 3.82%.

The euro decreased to $1.08; the British pound was lower at $1.29; and the U.S. dollar was lower and traded at 88.32 Swiss cents.

Brent crude decreased $0.006 to $74.76 a barrel, and the Dutch TTF natural gas was higher by €0.21 to €40.69 per MWh.

 

Europe Movers

Travis Perkins plc dropped 6% to 517.0 pence, and the building products company swung to a pre-tax loss and cut the dividend.

Greencore Group plc rose 5.6% to 178.60 pence, and the producer of convenience food upgraded its full-year profit estimate because of the continued sales momentum in the second quarter. 

Skanska AB increased 1.5% to 224.20 krona after the Swedish construction company won a contract worth 4.5 billion krona to renovate Raritan Bridge in New Jersey, U.S.A.

Ipsos SA advanced 1% to €42.10, and the market research and consulting company entered into exclusive talks to acquire The BVA Family. 

Nordex SE gained 1.6% to €14.46, and the German wind turbine company won two orders from Swedish renewable energy company OX2 AB to supply 70 turbines in Finland.