Europe Markets Lacked Direction Ahead of Rate Decisions

Bridgette Randall
17 Apr, 2025
London

European markets eased on the final trading day of the holiday-shortened week, and investors looked ahead to rate decisions from the European Central Bank. 

Benchmark indexes in Frankfurt, Paris, Milan, and London lacked direction as investors anticipated the sixth consecutive rate cut by the ECB later today. 

The ECB is expected to lower its deposit rate by 25 basis points to 2.25% amid subdued inflation and tariff-driven anxieties contributing to the weakness in economic growth. 

Investors are also looking ahead to comments from ECB President Christine Lagarde and hope that policymakers will provide greater clarity about the possible impact of the U.S. tariffs on the region's economy. 

On the economic front, Germany's producer prices declined in March after rising in the four previous months in a row, the Federal Statistical Office reported Thursday. 

The Producer Price Index decreased 0.2%, reversing a 0.7% increase in the previous day, mainly because of the 3.6% increase in energy prices and 4.3% fall in electricity prices.  

Investors also reacted to the latest earnings from Hermes, Siemens Energy, ABB, Brunello Cuccinelli, Wise, and Pluxee. 

 

Europe Indexes and Yields

The DAX index decreased by 0.1% to 21,283.11, the CAC-40 index edged lower by 0.3% to 7,305.92, and the FTSE 100 index declined by 0.6% to 8,228.21.

The yield on 10-year German bonds inched higher to 2.52%, French bonds increased to 3.29%, UK gilts moved up to 4.61%, and Italian bonds edged higher to 3.70%.

The euro decreased to $1.14; the British pound was lower at $1.32; and the U.S. dollar was higher and traded at 81.81 Swiss cents.

Brent crude increased $0.40 to $66.25 a barrel, and the Dutch TTF natural gas was higher by €0.29 to €35.68 per MWh.

 

Europe Movers

Siemens Energy increased 10.4% to €63.74, and the renewable and electric power company reported better-than-expected first-quarter results and raised its outlook for fiscal 2025. 

Hermes International declined 1.2% to €2,331.0 after the luxury brand company reported a 7.1% increase in revenue in the first quarter. 

Brunello Cuccinelli SpA edged up 0.6% to €97.92, and the Italian luxury products company reported steady growth in the first quarter and reiterated its 10% annual growth outlook. 

Revenue surged 10.5% to €341.47 million from €309.09 million a year ago.

Moncler decreased 1.8% to €54.10 after the Italian fashion brand retailer reported first-quarter 2025 revenue results.

Sandvik gained 0.3% to 189.90 krona after the Swedish engineering company reported first quarter 2025 results.

Revenue increased to SEK 29.30 billion from SEK 29.0 billion, profit jumped to SEK 3.74 billion from SEK 1.25 billion, and diluted earnings per share rose to SEK 2.97 from 99 cents a year ago.