Positive Earnings Support Weekly Advances In Europe, Investors Look for Details of US-UK Trade Deal

Bridgette Randall
09 May, 2025
London

European markets extended weekly gains on Friday as investors reviewed the latest batch of positive earnings. 

Benchmark indexes in Frankfurt, Paris, Milan, and London advanced amid optimism about the corporate earnings outlook. 

IAG, the parent company of British Airways, reiterated its full-year outlook and cited strong demand for its premium travel services. 

In addition, the Trump administration announced a "trade deal" has been struck with the UK but failed to provide details of import tax levels, scope of goods covered by the tariff program, and timetable. 

After a week of choppy trading, benchmark indexes in Frankfurt advanced 1.7%, in Paris rose 0.3%, and in London edged up 0.7%. 

 

Europe Indexes and Yields

The DAX index increased by 0.6% to 23,500.47, the CAC-40 index edged higher by 0.7% to 7,746.59, and the FTSE 100 index advanced 0.4% to 8,562.13.

The yield on 10-year German bonds inched higher to 2.57%, French bonds increased to 3.27%, the UK gilts moved up to 4.59%, and Italian bonds edged higher to 3.62%.

The euro increased to $1.12; the British pound was higher at $1.32; and the U.S. dollar was lower and traded at 83.04 Swiss cents.

Brent crude increased $0.52 to $63.36 a barrel, and the Dutch TTF natural gas was higher by €0.09 to €35.72 per MWh.

 

Europe Movers

Krones AG rose 3.8% to €139.60, and the packaging and bottling machine maker reported a 15% jump in profit in the first quarter. 

Sonova Holding AG jumped 3.5% to CHF 259.40, and the Switzerland-based hearing care product maker estimated higher sales and earnings in the fiscal year 2026. 

Commerzbank AG advanced 2% to €24.80 after the German bank reported a record quarterly profit. 

International Consolidated Airlines Group soared 3.4% to 300.10 pence, and the parent company of British Airways and Iberia Airlines reported better-than-expected results in the first quarter and reiterated its full-year outlook, citing strong demand for its premium services. 

Revenue in the first quarter increased 9.6%, and operating profit before exceptional items increased by €130 million to €198 million, and lower fuel prices offset the other cost increases.  

In addition, the company said it ordered 71 new wide-body aircraft.