Europe Markets Turned Lower Amid U.S. Trade Policy Chaos, EU Passenger Car Registration Eased

Bridgette Randall
24 Apr, 2025
London

Stock market indexes across the eurozone lacked direction as investors focused on the latest batch of earnings. 

Benchmark indexes in Frankfurt, Paris, Milan, and London traded around the flatline as investors reacted to the latest iteration of U.S. trade policy. 

Investors reviewed the latest announcement from the Trump administration with deep skepticism amid constantly changing messaging. 

The U.S. Treasury Secretary clarified that the White House's offer to cut China tariffs is not unilateral and there is no deadline for finalizing the overall framework. 

 

EU Passenger Car Sales Fell Third Consecutive Month

Passenger car sales in the European Union decreased 0.2% from a year ago to 1.03 million in March, following a 3.4% fall in February. 

Passenger car sales declined for the third consecutive month amid a deteriorating economic growth outlook and weakening export environment, the European Automobile Manufacturers' Association noted in its monthly report. 

The Netherlands led the fall in passenger car registrations with a drop of 14.8%, followed by a decrease of 14.5% in France, 10.2% in Belgium, and 3.9% in Germany. 

Hybrid-electric vehicles surged, capturing 35.5% of the market and remaining the preferred choice among EU consumers. 

Meanwhile, the combined market share of petrol and diesel cars decreased to 38.3%, down from 48.3% in the period a year ago. 

In the first quarter of 2025, new battery-electric car sales grew by 23.9%, to 412,997 units, increasing its share to 15.2% of the total EU market. 

Three of the four largest markets in the EU, accounting for 63% of all battery-electric car registrations, recorded robust gains. 

Registration rose nearly 39% in Germany, 30% in Belgium, and 7.9% in the Netherlands. 

This contrasted with France, which saw a decline of 6.6%.

Overall registration in the first quarter decreased 1.9% from a year ago to 2.8 million units. 

 

Europe Indexes and Yields

The DAX index decreased by 0.9% to 21,755.45, the CAC-40 index edged lower 0.8% to 7,422.34, and the FTSE 100 index declined by 0.3% to 8,376.45.

The yield on 10-year German bonds inched lower to 2.47%, French bonds decreased to 3.21%, the UK gilts moved down to 4.55%, and Italian bonds edged lower to 3.59%.

The euro increased to $1.14; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 82.69 Swiss cents.

Brent crude increased $0.25 to $66.37 a barrel, and the Dutch TTF natural gas was higher by €0.05 to €34.12 per MWh.

 

Stock Movers 

BNP Paribas declined 2.9% to €71.76 after the French bank reported a decline in profits in the latest quarter. 

Kering SA dropped 6.4% to €163.74, and the luxury goods company reported weaker-than-expected earnings in the first quarter and signaled macroeconomic headwinds.