European Markets Extend Weekly Rally to Fourth Consecutive Week

Bridgette Randall
02 May, 2025
London

Stock market indexes in Europe edged higher after investors returned from a one-day holiday amid hopes of the start of trade talks between the U.S. and China. 

Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher and extended weekly gains between 2% and 3% as market sentiment recovered.

Investor sentiment rebounded for the fourth consecutive week in the hopes that the U.S. will extend the pause on tariffs with key trading partners. 

Market sentiment was bolstered after banks, financial services providers, and industrial companies reported stronger-than-anticipated earnings in the first quarter. 

Closer to home, investors are awaiting the release of the inflation, unemployment, and factory activities index in the eurozone later today.

France's final manufacturing activity index rose to 48.7 in April from 48.5 in the previous month, according to the latest update by S&P Global.

The HCOB Manufacturing PMI index, which tracks private business activities, signaled a continuation of contraction, but the pace of decline was the mildest since the latest downturn, which began in February 2023. 

Across the Atlantic, investors are anticipating the release of the nonfarm payroll report, and economists are estimating job growth in April to slow down to about 135,000. 

April's jobs report will provide the first look at the impact on the labor market after the U.S. president launched a global tariff war, uprooting the supply chains in place for nearly eight decades and disrupting global financial markets. 

Benchmark indexes in Germany, France, Italy, and the UK dropped between 2% and 4% in April and managed to rebound from the worst decline of as much as 10% in early April. 

 

Europe Indexes and Yields

The DAX index increased by 1.3% to 22,790.64, the CAC-40 index edged higher 1.3% to 7,691.32, and the FTSE 100 index advanced by 0.9% to 8,571.81.

The yield on 10-year German bonds inched higher to 2.47%, French bonds increased to 3.19%, the UK gilts moved down to 4.46%, and Italian bonds edged higher to 3.59%.

The euro increased to $1.13; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 82.77 Swiss cents.

Brent crude increased $0.13 to $62.26 a barrel, and the Dutch TTF natural gas was higher by €0.59 to €32.48 per MWh.

 

Europe Stock Movers 

Standard Chartered decreased 0.3% to 1,094.0 pence, and the UK-based bank and financial service provider reported an increase in net income and reiterated its annual outlook. 

Shell PLC rose 3.4% to 2,519.0 pence after the energy explorer and retailer reported strong quarterly results and announced a $3.5 billion stock repurchase plan. 

Lloyds Banking Group decreased 0.2% to 71.24 pence, and the UK-based financial service provider increased its provision for bad loans amid worries of the negative impact of the U.S.-led trade war. 

The parent company of Lloyds Bank, Halifax, and Bank of Scotland reported record mortgage loan business in the quarter, but pre-tax income dropped 7% to £1.5 billion, mainly because of higher impairment charges and costs.

Net revenue in the quarter ending in March increased to 4.4 billion from 4.2 billion, net after-tax profit eased to 1.1 billion from 1.2 billion, and earnings per share were unchanged at 1.7 pence.