European Markets Attempt to Rebound Amid Trade and Geopolitical Uncertainties

Bridgette Randall
20 May, 2025
London

European markets traded higher following lackluster trading in the previous session, and bond yields edged higher for the second consecutive day. 

Benchmark indexes in Frankfurt, Paris, Milan, and London edged up amid ongoing geopolitical uncertainties and constantly shifting U.S. trade policy. 

Investors reacted to the latest batch of earnings, including results from Vodafone, Greggs, Smiths, Diploma, and Swiss Life. 

So far in this earnings season, corporate results have surpassed market expectations, but several leading companies have withdrawn their outlook because of the uncertainties surrounding the U.S. trade policy.  

 

Europe Indexes and Yields

The DAX index increased by 0.1% to 23,956.59, the CAC-40 index edged higher by 0.1% to 7,895.11, and the FTSE 100 index advanced 0.3% to 8,722.40.

The yield on 10-year German bonds inched lower to 2.56%, French bonds decreased to 3.23%, UK gilts moved down to 4.64%, and Italian bonds edged lower to 3.58%.

The euro increased to $1.13; the British pound was higher at $1.34; and the U.S. dollar was lower and traded at 83.26 Swiss cents.

Brent crude decreased $0.19 to $65.35 a barrel, and the Dutch TTF natural gas was higher by €0.40 to €35.50 per MWh.

 

Europe Movers

Vodafone Group plc rose 2% to 73.91 pence after the UK-based wireless telecom operator swung to a full-year operating loss of €411 million, driven by impairment charges of €4.5 billion for Germany and Romania.

Swiss Life Holding AG decreased 0.9% to CHF 808.0, despite the company reporting higher premium and fee income. 

Diploma PLC soared 16.3% to 4.930 pence after the UK solutions provider to industrial and life sciences end markets revised higher its annual outlook. 

Greggs PLC rose 7% to 2,150.0 pence after the bakery chain reiterated its full-year outlook. Sales in the 20-week period increased 7.4% to £784 million.