EU Passenger Car Sales Rebounded In April, France's Inflation Eased, German Consumer Sentiment Index Improved

Bridgette Randall
27 May, 2025
London

European stock market indexes meandered for the second day in a row amid a lack of fresh catalysts and earnings updates. 

Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher but traded in a tight range as investors overlooked the threat of higher U.S. tariffs. 

France's consumer price inflation unexpectedly weakened to 0.7% in April from 0.8% in March, according to a preliminary estimate by the statistical agency, INSEE. 

The moderation in inflation was largely driven by a slower increase in transportation prices and a larger decline in communication prices.

The inflation rate dropped to the lowest level since February 2021. 

Germany's forward-looking consumer sentiment index slightly improved for June, according to GfK Group. 

The GfK Consumer Climate Indicator improved to -19.9 in June from 20.8 in the previous month, marking the third consecutive month of improvement and the highest reading since November 2024. 

The uptick in consumer sentiment was largely driven by a sharp rise in economic expectations, which rose to a two-year high. 

 

EU Passenger Car Registration Rebounded In April

Passenger car registration in the European Union rebounded despite the ongoing economic uncertainties. 

Overall registration in the region increased 1.3% from a year ago to 925,359 units, driven by a 7.1% surge in Spain and a 2.7% rise in Italy. 

However, registrations in the Netherlands fell 4%, in Germany decreased 2%, and in Belgium decreased 4.8%. 

For the first four months, overall car registration declined by 1.2% from a year ago. 

 

Europe Indexes and Yields

The DAX index increased by 0.06% to 24,042.92, the CAC-40 index edged lower 0.1% to 7,817.75, and the FTSE 100 index advanced 0.6% to 8,773.97.

The yield on 10-year German bonds inched lower to 2.53%, French bonds decreased to 3.20%, UK gilts moved down to 4.63%, and Italian bonds edged lower to 3.53%.

The euro decreased to $1.14; the British pound was lower at $1.35; and the U.S. dollar was higher and traded at 82.28 Swiss cents.

Brent crude increased $0.07 to $64.60 a barrel, and the Dutch TTF natural gas was higher by €0.03 to €37.15 per MWh.

 

Europe Stock Movers

Defense stocks advanced and extended an eight-week rally. 

Rheinmetall AG increased 2.2% to €1,880.50, Rolls Royce Holdings plc gained 2.6% to 858.20 pence, Safran SA edged up 0.4% to 258.10, and BAE Systems plc gained 2.9% to 1,895.50 pence.