European Markets Advance as Investors Shift Attention to Earnings Releases

Bridgette Randall
14 Apr, 2025
London

European markets opened sharply higher after the U.S. announced a pause in country-specific tariffs on smartphones, computers, and semiconductors. 

Benchmark indexes in Frankfurt, Paris, Milan, and London gained between 1% and 2%, as investors focused on the latest iteration of U.S. tariffs. 

Over the last two weeks, market sentiment has been cautious, and U.S. trade policy uncertainty remained in focus amid the constantly changing stance of the Trump administration. 

The U.S. Commerce Secretary Howard Lutnick said these advanced semiconductor products could face additional levies over the next two months. 

Investors are increasingly realizing that the U.S. tariff turmoil and confusion, rooted in Donald Trump's flip-flops, is part of the plan to keep allies and exporting companies on edge and gain a negotiating leverage, rather than a byproduct of well-thought-out long-term trade policy. 

Investors shifted their attention to upcoming earnings and a raft of economic announcements scheduled later in the week. 

 

Europe Indexes and Yields

The DAX index increased by 1.9% to 20,759.61, the CAC-40 index edged higher 1.8% to 7,236.96, and the FTSE 100 index advanced by 1.9% to 8,116.01.

The yield on 10-year German bonds inched higher to 2.55%, French bonds decreased to 3.32%, the UK gilts moved down to 4.70%, and Italian bonds edged lower to 3.75%.

The euro increased to $1.14; the British pound was higher at $1.32; and the U.S. dollar was higher and traded at 81.57 Swiss cents.

Brent crude increased $0.06 to $64.82 a barrel, and the Dutch TTF natural gas was lower by €0.01 to €33.61 per MWh.

 

Week Ahead  

Investors are looking ahead to the release of the UK’s retail sales and unemployment rate, France’s inflation rate, and the Eurozone industrial production report.

Germany’s economic sentiment index and producer price inflation are on schedule as well.

The U.K., Italy, and the European Union will release the inflation rate reports and the U.K.’s retail prices as well.

The European Central Bank is set to announce its rate decision, and investors are divided about the possible rate cut.

Italy will release its balance of trade and annual construction output reports, and Spain will comment on consumer confidence.

 

Earnings Calendar 

On the earnings front, investors await the results from Ashmore Group, LVMH, Christian Dior, Vinci, Ericsson, Publicis Groupe, Wise Plc, ASML Holding, Rio Tinto, Heineken, Hermes International, L’Oreal, Antofagasta, Sandvik, and ABB Ltd.