European Markets Extend Gains Powered by Bank and Luxury Stock Rally Lifts

Bridgette Randall
29 Apr, 2025
London

European markets advanced in Tuesday's trading as investors awaited the release of economic data and a slew of corporate earnings. 

Benchmark indexes in Frankfurt, Paris, Milan, and London advanced, and investors reviewed earnings from Porsche, Schneider Electric, and Deutsche Börse. 

Incoming German Chancellor Friedrich Merz announced cabinet positions from his conservative CDU Party, including foreign minister and economy minister. 

Investor sentiment improved over the last two weeks because of positive earnings from leading corporations and hopes of improving trade relations with the U.S. 

Consumer sentiment in Germany continues its recovery in April that began in the previous month. 

Both income expectations and the willingness to buy show noticeable increases, while economic expectations improve only slightly.

Germany’s GfK Consumer Climate Indicator improved to -20.6 for May 2025 from a revised -24.3 in April, the best reading since August 2024, extending a recovery that began in April.

Germany's consumer sentiment has remained weak amid deteriorating economic conditions and weak export growth. 

“Whether the decline in the propensity to save will continue in the coming months remains to be seen, and it certainly depends on how trade conflict between the U.S. and the rest of the world develops,” added Rolf Burkl, consumer expert at NIM. 

 

Europe Indexes and Stocks 

Merck KGaA rose 1.3% to €122.70, and the German pharmaceutical company agreed to acquire SpringWorks Therapeutics for $3.9 billion to expand its cancer business. 

Banking and luxury stocks advanced in Paris trading for the second consecutive day. 

LVMH increased 0.2% to €502.0, Kering SA edged up 0.3% to €178.50, and L'Oreal SA advanced 0.2% to €379.20. 

Credit Agricole SA edged up 0.2% to €17.13, and BNP Paribas SA increased 0.2% to €74.10. 

Deliveroo PLC extended a two-day gain to 19%, to 170.40 pence, after the delivery service provider received a takeover offer from the U.S.-based DoorDash.  

Deutsche Bank AG increased 0.3% to €22.42, and the German bank reported a 39% increase in earnings in the first quarter. 

HSBC Holdings advanced 1.4% to 843.68 pence, and the UK- and China-based bank reported better-than-expected results in the first quarter.