European Markets Retain Upward Bias as Earnings Season Gains Momentum

Bridgette Randall
15 Apr, 2025
London

European markets advanced as earnings season gained momentum and optimism rose about the possible pause on U.S. tariffs on auto imports. 

Benchmark indexes in Frankfurt, Paris, Milan, and London advanced between 1% and 2%, and investors shifted their focus to the latest earnings results. 

Luxury stocks declined after LVMH reported a larger-than-expected decrease in first-quarter sales. 

Automobile stocks advanced after the U.S. president signaled a possible pause on tariffs to give manufacturers time to expand their U.S. operations. 

On the economic front, Germany's wholesale price inflation slowed in March, but prices rose for the fourth consecutive month, according to the Federal Statistical Office. 

Wholesale price inflation slowed to 1.3% in March from a two-year high of 1.6% in the previous month, largely driven by a 44% surge in prices for tea, coffee, cocoa, and spices. 

 

Europe Indexes and Yields

The DAX index increased by 0.8% to 21,117.30, the CAC-40 index edged lower by 0.2% to 7,258.36, and the FTSE 100 index advanced by 0.6% to 8,187.36.

The yield on 10-year German bonds inched lower to 2.50%, French bonds decreased to 3.26%, UK gilts moved down to 4.65%, and Italian bonds edged lower to 3.68%.

The euro decreased to $1.13; the British pound was higher at $1.32; and the U.S. dollar was higher and traded at 81.77 Swiss cents.

Brent crude increased $0.43 to $65.31 a barrel, and the Dutch TTF natural gas was lower by €0.24 to €34.39 per MWh.

 

Europe Movers 

LVMH declined 6.6% to €494.90, and the luxury retailer reported a larger-than-expected 3% decline in sales in the first quarter, largely because of the weakness in sales in the U.S. 

Luxury stocks declined after the weaker-than-expected results from LVMH dampened sentiment in the sector.  

Salvatore Ferragamo dropped 7.2% to €5.01, Hermes International SCA decreased 0.9% to €2,334.0, and Kering SA fell 1.6% to €168.50. 

Automobile stocks advanced after the U.S. president said he may pause tariffs on automobile products to give automakers more time to expand U.S. production. 

Mercedes-Benz Group increased 3.2% to €50.83, BMW AG gained 3.4% to €71.0, and VW Group advanced 3.7% to €90.62. 

Publicis Groupe SA jumped 2.2% to €85.80 after the French public relations company reported a 9.4% rise in revenue in the first quarter and reaffirmed its 2025 outlook.