European Markets Extend Weekly Gains to Fifth Consecutive Week, Richemont In Focus

Bridgette Randall
16 May, 2025
London

European markets advanced in Friday's trading, and benchmark indexes are set to extend their advance to the fifth consecutive week. 

Market sentiment wavered in a choppy week of trading, but benchmarks across Europe hovered near their six-week highs amid de-escalating trade tensions with the U.S. 

Investors are hoping that the European Union will be able to strike a deal with the U.S. as early as next month and avoid sky-high import taxes on automobiles, vehicle parts, steel, and aluminum. 

On the earnings front, France's jobless rate edged up to 7.4% in the first quarter from 7.3% in the previous quarter, according to data released by the INSEE. 

The labor participation rate increased to 75.1% from 74.6% in the previous quarter, but the number of unemployed persons increased by 64,000 to 2.4 million. 

However, the youth jobless rate for those aged between 15 and 24 was virtually unchanged at 19.2%; for individuals between 25 and 49 edged up a fraction to 6.7%, and for individuals above 50 and over held steady at 4.7%. 

 

Europe Indexes and Yields

The DAX index increased by 0.4% to 23,786.26, the CAC-40 index edged higher by 0.2% to 7,853.47, and the FTSE 100 index advanced 0.5% to 8,675.90.

The yield on 10-year German bonds inched lower to 2.58%, French bonds decreased to 3.27%, UK gilts moved down to 4.62%, and Italian bonds edged lower to 3.59%.

The euro increased to $1.12; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 83.34 Swiss cents.

Brent crude decreased $0.06 to $64.46 a barrel, and the Dutch TTF natural gas was lower by €0.20 to €35.16 per MWh.

 

Europe Movers

Richemont SA gained 5.3% to CHF 163.15, and the luxury goods group reported a better-than-expected 7% increase in the first quarter. 

Swiss Re AG increased 1.3% to CHF 151.65, and the reinsurance group reported a 16% increase in profit in the first quarter. 

The company delivered higher earnings despite $587 million of losses linked to wildfires in Los Angeles, California.  

Aegon Ltd. declined 0.4% to €6.19, and the Dutch insurance company reported weak results in the first quarter. 

Despite the weak quarterly results, the insurance company reiterated its full-year estimate of €800 million in free cash flow and a dividend per share of €0.40.