Europe Stock Indexes Turned Lower, UK Consumer Price Inflation Eased In March

Bridgette Randall
16 Apr, 2025
London

European markets traded down amid renewed growth and trade barriers in the semiconductor-linked stocks. 

Benchmark indexes in Frankfurt, Paris, Milan, and London fell between 0.7% and 1.3% amid ongoing trade uncertainty and geopolitical tensions. 

On a light day of economic releases, the UK's consumer price inflation in March slowed to 2.6% from 2.8% in February. 

The largest downward contribution came from recreation and culture inflation easing to 2.4% from 3.4%, data processing equipment prices falling 5.1%, and transportation equipment inflation easing to 1.2% from 1.8% a year ago, respectively. 

Core inflation, which excludes volatile food and energy prices, slowed to 3.4% from 3.5% a year ago. 

The euro continued to trade higher against the U.S. as investors and traders shifted allocation away from the U.S.-denominated assets because of incoherent and chaotic U.S. trade policy. 

 

Europe Indexes and Yields

The DAX index decreased by 0.9% to 21,057.56, the CAC-40 index edged lower by 0.9% to 7,271.34, and the FTSE 100 index declined by 0.7% to 8,191.10.

The yield on 10-year German bonds inched lower to 2.48%, French bonds decreased to 3.26%, UK gilts moved down to 4.59%, and Italian bonds edged lower to 3.69%.

The euro increased to $1.14; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 81.40 Swiss cents.

Brent crude decreased $0.38 to $64.29 a barrel, and the Dutch TTF natural gas was higher by €0.11 to €34.40 per MWh.

 

Europe Movers

ASML fell 4.6% to €576.40 after the Dutch supplier to the semiconductor industry reported first quarter 2025 results.

Net sales edged up to €7.74 billion from €5.29 billion, net income jumped to €2.35 billion from €1.22 billion, and diluted earnings per share rose to €6.00 from €3.11 a year ago.

However, first-quarter order bookings of €3.94 billion fell short of analysts' expectations amid tariff uncertainties. 

Infineon Technologies declined 1.8% to €26.52 after the U.S. placed additional restrictions on the sale of advanced equipment to China. 

Heineken NV increased 3.2% to €77.40 after the company reported better-than-expected quarterly results and reaffirmed its annual outlook. 

Revenue decreased 4.9% to €7.78 billion from €8.18 billion a year ago.

The company guided operating profit in the full year to "grow organically between 4% and 8%," according to a statement released to investors. 

"In the first quarter, we delivered a 0.9% organic increase in net revenue. As anticipated, primarily due to calendar-related factors, organic beer volume declined by 2.1%. 

Despite volatile consumer and geopolitical trends, we are performing within the range of expectations," said Dolf van den Brink, Chairman of the Executive Board and CEO. 

Sartorius AG jumped 4.4% to €168.40, and the company posted better-than-expected first-quarter results.

In addition, the pharmaceutical equipment supplier said it is targeting higher profits in 2025. 

Ipsen SA declined 2.8% to €96.35 despite the specialty-care pharmaceutical company delivering strong sales in the first quarter of 2025 and confirming its full-year outlook.