European Markets Hover at 2-Month Highs with Earnings In Focus

Bridgette Randall
14 May, 2025
London

Stock market indexes in Europe lacked direction as investors remained cautious about the constantly changing U.S. trade stance and policy. 

Benchmark indexes in Frankfurt, Paris, Milan, and London traded in a tight range amid fresh worries of protracted trade tensions between the European Union and the U.S.  

Despite the waning enthusiasm about the U.S.-China "trade deal" announced on Monday, investors worried that the longer-term impact of the sharp escalation of tariffs is negative for the global economy and international trade. 

Meanwhile, the U.S. lowered its maximum duty on Chinese goods shipped under the de minimis program to 54% from 120%, and China removed its ban on purchases of Boeing aircraft. 

International trade observers fear that Chinese companies are likely to target markets in the European Union to make up for lost markets in the U.S.  

 

Europe Indexes and Yields 

 The DAX index increased by 0.2% to 23,681.63, the CAC-40 index edged lower 0.2% to 7,861.07, and the FTSE 100 index advanced 0.01% to 8,603.67.  

The yield on 10-year German bonds inched higher to 2.68%, French bonds decreased to 3.35%, the UK gilts moved down to 4.66%, and Italian bonds edged lower to 3.68%.  

The euro increased to $1.12; the British pound was higher at $1.33; and the U.S. dollar was higher and traded at 83.96 Swiss cents.  

Brent crude decreased $0.33 to $66.29 a barrel, and the Dutch TTF natural gas was lower by €0.06 to €35.60 per MWh.  

 

Europe Movers  

Burberry plc soared 8.1% to 895.20 pence after the UK-based fashion apparel and accessories retailer reported better-than-expected fiscal 2025 results and plans to cut 1,700 jobs around the world.  

TUI Group fell 10.4% to €6.80 despite the German travel and tourism company reporting strong fiscal second-quarter results and confirming its annual outlook. 

The company guided fiscal 2025 revenue to increase between 5% and 10% and operating earnings to rise between 7% and 10% from a year ago. 

Alstom plunged 16.2% to €19.10 after the French mobility engineering company reported strong fiscal 2025 results, but the company's outlook for the current year fell short of investor expectations. 

The company guided fiscal 2026 sales to increase between 3% and 5%, EBIT margin of 7%, and free cash flow between €200 million and €400 million.