Europe Indexes Rebounded 2%, Eurozone Business Activities Growth Slowed In April

Bridgette Randall
23 Apr, 2025
London

European markets advanced amid hopes of easing of U.S.-led trade tensions, and investors reviewed the fresh batch of earnings. 

Benchmark indexes in Frankfurt, Paris, Milan, and London jumped between 1% and 2% after the Trump administration signaled its willingness to compromise amid stiff resistance from China and key allies. 

U.S. Treasury Secretary Scott Bessent told investors in a closed-door meeting that the current high level of trade tensions with China is "unsustainable on both sides," and the two trading partners would have to find a common ground. 

Bessent's comments raised hopes that the Trump administration's punitive tariffs of 145% could be substantially cut as early as this month. 

The unilateral tariffs imposed by the Trump administration have stoked fears of high inflation and a sharp slowdown in the U.S. economy. 

Moreover, as many as one million jobs in U.S. small businesses and an additional three million jobs in China are likely to be lost over the rest of the year if the cumulative U.S. tariffs are imposed starting in May. 

Despite the change in U.S. rhetoric, trade negotiations between Japan and the U.S. ended with no clear plan amid a lack of priorities and a changing demand list. 

Moreover, it is not clear if the U.S. will lift, pause, or trim proposed tariffs on imports from the Euro Area, including shipments via Mexico and Canada. 

On the economic front, private sector activity growth in the eurozone expanded for the fourth consecutive month. 

The HCOB Eurozone Composite PMI decreased to 50.1 in April from 50.9 in the previous month, according to a monthly update from S&P Global. 

Private sector activities in Germany unexpectedly declined in April, the first decline in four months, as tariff uncertainty weighed on business confidence and demand. 

The HCOB Flash Germany Composite PMI declined to 49.7 in April from 51.3 in March, according to a separate release by S&P Global.  

 

Europe Indexes and Yields

The DAX index increased by 2.3% to 21,779.53, the CAC-40 index edged higher by 1.5% to 7,434.58, and the FTSE 100 index advanced by 1.2% to 8,428.84.

The yield on 10-year German bonds inched higher to 2.47%, French bonds increased to 3.23%, the UK gilts moved down to 4.53%, and Italian bonds edged higher to 3.61%.

The euro decreased to $1.14; the British pound was higher at $1.33; and the U.S. dollar advanced and traded at 82.10 Swiss cents.

Brent crude increased $1.04 to $68.48 a barrel, and the Dutch TTF natural gas was higher by €0.44 to €34.79 per MWh.

 

Europe Movers

SAP AG jumped 9.7% to €239.95 after the German software company reported a 60% jump in operating profit in its latest quarter. 

Revenue edged up 14% to €9.01 billion from €8.04 billion, operating income swung to a profit of €2.33 billion compared to a loss of €787 million, and earnings per share came in at €1.52 compared to a loss of 71 cents a year ago.

Danone Group traded flat at €73.74 after the French dairy products maker reported higher sales in the first quarter of 2025 and comparable sales rose above 4%. 

The company guided fiscal 2025 comparable sales to grow between 3% and 5%, with recurring operating income growing faster than sales.

Volvo Group rose 1.4% to 254.70 krona after the Swedish vehicle manufacturer announced its plans to cut 800 U.S. jobs amid weak truck sales and a sharp drop in earnings. 

Just Eat Takeaway.com traded flat at €19.16 after the Dutch on-demand delivery company reported first-quarter 2025 gross transaction value results.

Total gross transaction value amounted to €4.72 billion, up from €4.70 billion a year ago, while total orders were down 6% to 156.1 million from 166.6 million in the same quarter in 2024.

The company guided 2025 adjusted EBITDA to be between €360 million and €380 million and constant currency GTV growth, excluding the rest of the world segment, to range between 4% and 8% from a year ago.