Sweden and Norway Hold Rates Steady, Germany's Trade Surplus Stays Surplus

Bridgette Randall
08 May, 2025
Frankfurt

European markets advanced as investors awaited bank rate decisions and the fresh batch of earnings. 

Benchmark indexes in Frankfurt, Paris, Milan, and London traded higher amid optimism about corporate earnings and possible de-escalation of trade tensions with the U.S. 

Sweden's Riksbank left its policy rate at 2.25%, citing a sharp shift in U.S. trade policy and a high level of uncertainty surrounding trade negotiations with the U.S. 

The Bank of England is widely anticipated to lower its Bank Rate by 25 basis points to 4.25%, and the Norges Bank left its policy rate at 4.5% and signaled possible cuts later in the year. 

“The committee has decided to keep the policy rate unchanged. Inflation is still above target. 

If the policy rate is lowered prematurely, prices may continue to rise rapidly,” said Norges Bank's Deputy Governor Pål Longva.

On Wednesday, the U.S. Federal Reserve held steady its rate range between 4.25% and 4.50%, and Fed Chair Jerome Powell ruled out the preemptive rate cut to soften the impact of the Trump administration's tariffs. 

 

Stable German Trade Surplus In March

Germany's seasonally and calendar-adjusted exports and imports advanced from the previous month and a year ago, and the trade surplus was stable, the Federal Statistical Office reported Thursday. 

Exports increased 2.3% to €133.2 billion, imports advanced 2.3% to €112.1 billion, resulting in a trade surplus of €21.1 billion. 

Exports to the U.S., Germany's largest partner, increased 2.4% from the previous month to €14.6 billion; to China jumped 10.2% to €7.5 billion; and to the U.K. fell by 2.8% to €6.4 billion. 

Imports from China rose 9.6% to €14.7 billion, from the U.S. advanced 7.9% to €8.1 billion, and from the U.K. decreased 5.8% to €3.2 billion. 

In the first quarter, Germany's total exports edged up 0.9% from a year ago to €349.3 billion. 

 

Europe Indexes and Yields

The DAX index increased by 0.8% to 23,298.20, the CAC-40 index edged higher by 0.4% to 7,656.70, and the FTSE 100 index advanced 0.1% to 8,569.65.

The yield on 10-year German bonds inched higher to 2.48%, French bonds decreased to 3.19%, UK gilts moved down to 4.45%, and Italian bonds edged lower to 3.54%.

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

Brent crude increased $0.21 to $61.33 a barrel, and the Dutch TTF natural gas was higher by €0.42 to €34.67 per MWh.

 

Europe Movers

Siemens Energy jumped 3.1% to €73.16, and the company raised its forecast after strong quarterly results.

The renewable energy also sold a 90% stake in its wind energy businesses in India and Sri Lanka to a private equity group, TPG. 

Puma SE jumped 6.7% to €24.94, and the athletic footwear maker reported stable first-quarter results and reiterated its outlook despite the company lacking a chief executive officer.  

InBev AB jumped 1.7% to €57.50, and the alcoholic beverage company reported results at the top end of its guidance, driven by a better-than-expected sales mix. 

AP Moeller-Maersk AS decreased 1.4% to DKK 11,130.0, and the shipping and port terminal manager reported a rise in operating earnings in the first quarter and reiterated its annual outlook.