Caution Prevailed In European Trading Amid Global Trade Uncertainties

Bridgette Randall
22 Apr, 2025
London

Investors across Europe remained cautious amid elevated trade tension and a lack of meaningful progress in resolving new tariff threats. 

Benchmark indexes in Frankfurt, Paris, Milan, and London decreased after investors returned from a long Easter break. 

Investors have been on edge amid constantly shifting U.S. trade policy and rapidly rising risks of a U.S. economic recession brought on by a U.S.-led tariff war. 

Moreover, the Trump administration's pressure and sharp criticism of  the Federal Reserve's policy also raised prospects of political interference and attacks on the autonomy of the central bank. 

The Trumps' blame game on the Fed also contributed to the weakness in the U.S. dollar, as investors' confidence was shaken in the safe-haven status of the currency. 

Gold surged as much as 0.7% and reached a new intraday high of $3,490.11 as investors looked for safety amid growing economic uncertainty. 

 

Europe Indexes and Yields

The DAX index decreased by 0.6% to 21,074.44, the CAC-40 index edged lower 0.5% to 7,250.84, and the FTSE 100 index advanced by 0.04% to 8,278.43.

The yield on 10-year German bonds inched lower to 2.46%, French bonds decreased to 3.23%, UK gilts moved up to 4.58%, and Italian bonds edged lower to 3.64%.

The euro decreased to $1.15; the British pound was higher at $1.34; and the U.S. dollar was higher and traded at 81.04 Swiss cents.

Brent crude increased $0.58 to $66.84 a barrel, and the Dutch TTF natural gas was higher by €0.01 to €35.38 per MWh.

 

Europe Movers

Hermes International S.A. dropped 3.2% to €2,287.00, LVMH declined 2.3% to €474.55, and Kering SA fell 0.6% to €163.52. 

Volkswagen AG gained 2.1% to €91.42, Mercedes-Benz Group increased 1% to €50.72, BMW AG gained 0.3% to €70.46, and Renault SA advanced 0.7% to €44.09. 

UniCredit SpA edged down 0.1% to €48.35, BNP Paribas SA advanced 1.4% to €71.74, Deutsche Bank rose 1.7% to €21.03, and Barclays PLC advanced 0.1% to 277.45 pence.