European Markets Extended Gains, UK Retail Sales Perked Up and France's Manufacturing Confidence Improved

Bridgette Randall
25 Apr, 2025
London

European markets advanced on Friday and extended weekly gains, and investors shifted their attention to a flood of earnings results. 

Benchmark indexes in Frankfurt, Paris, Milan, and London gained and extended weekly gains between 2% and 3%, overlooking looming U.S. tariff threats. 

Investor sentiment recovered for the second consecutive week amid hopes of the European Central Bank continuing its rate cut campaign to soften weakening economic growth. 

U.S. tariffs are likely to put additional pressure on the currency union, and the four largest economies in the region have little headroom in increasing government spending. 

 

UK Retail Sales Increase Surpassed Expectations

On the economic front, the UK's retail sales rose more than expected in March, and France's manufacturing climate indicator improved in April. 

Retail sales in the UK rose 2.6% from a year ago and advanced 0.4% from the previous month in March, the Office for National Statistics reported Friday. 

Favorable weather conditions supported a 3.7% rise in sales in apparel sales, but food store sales declined 1.3%. 

Excluding fuel, retail sales rose 0.5% from the previous month. 

France's manufacturing climate indicator improved to 99 in April from 96 in the previous month, the statistical agency, INSEE, reported Friday.

The confidence index rose to the highest level since May 2024 following the reduced pessimism for new overall orders and foreign orders and pricing environment. 

 

Europe Indexes and Yields

The DAX index increased by 0.3% to 22,132.06, the CAC-40 index edged higher by 0.6% to 7,548.89, and the FTSE 100 index advanced by 0.2% to 8,420.54.

The yield on 10-year German bonds inched higher to 2.46%, French bonds increased to 3.17%, the UK gilts moved down to 4.49%, and Italian bonds edged higher to 3.55%.

The euro increased to $1.14; the British pound edged higher at $1.33; and the U.S. dollar was higher and traded at 83.07 Swiss cents.

Brent crude decreased $0.02 to $66.53 a barrel, and the Dutch TTF natural gas was lower by €0.23 to €33.40 per MWh.

 

Europe Movers

Aéroports de Paris SA surged 2.1% to €109.10 after the airport operator reported a 12.2% increase in revenue in the first quarter and reiterated its full-year outlook. 

Safran SA jumped 5.2% to €232.0, and the French aerospace company reported better-than-expected earnings in the latest quarter on strong demand for civilian aircraft. 

Revenue increased 14%, and the company reaffirmed its full-year outlook. 

Nokia Oyj declined 2% to €4.33 after the company reported weaker-than-expected quarterly results and revenue declined from a year ago.