European Markets Extend Weekly Losses to 7% Amid Growth and Tariff Worries

Bridgette Randall
04 Apr, 2025
London

European markets extended weekly losses amid tariff worries compounded by a weakening growth outlook.

Benchmark indexes in Frankfurt, Paris, Milan, and London dropped between 3% and 6%, and the euro jumped to a multi-month high against the U.S. dollar. 

Germany's manufactured goods orders stagnated in February compared to the previous month despite the U.S. importers front-loading ahead of the tariffs. 

Manufactured goods orders, adjusted for seasonal and calendar effects and for large orders, declined 0.2% from the previous month, according to a report released by the Federal Statistical Office, or Destatis.

Overall orders declined 0.2% from a year ago.

France's industrial production rebounded monthly 0.7% in February from a decline of 0.5% in January, the INSEE reported Friday. 

However, industrial production declined 1.9% from a year ago, as energy-intensive sectors remained below 2021 levels. 

 

Europe Indexes and Yields

The DAX index decreased by 3.4% to 20,843.45, the CAC-40 index edged lower 3.8% to 7,308.20, and the FTSE 100 index declined by 3.9% to 8,147.07.

The yield on 10-year German bonds inched lower to 2.57%, French bonds decreased to 3.33%, the UK gilts moved down to 4.44%, and Italian bonds edged lower to 3.72%.

The euro increased to $1.10; the British pound was lower at $1.30; and the U.S. dollar was lower and traded at 85.41 Swiss cents.

Brent crude decreased $1.38 to $68.75 a barrel, and the Dutch TTF natural gas was lower by €0.76 to €38.79 per MWh.

 

Europe Stock Movers 

Sodexo Group dropped 2.4% to €57.75, and the French food services provider guided for a slower-than-expected growth in North America.

Revenue in the first half of 2025 edged up to €12.47 billion from €12.10 billion, net profit was €434 million compared to a loss of €74 million, and diluted earnings per share were €2.94 compared to a loss of 50 cents a year ago.

The company guided for the full-year revenue growth to be between 3% and 4%, compared to its previous forecast of 5.5% to 6.5%, and an underlying operating profit margin between 10 bps and 20 bps, compared to 30 bps to 40 bps previously estimated.