European Markets Scale Higher May Amid Persistent Trade and Geopolitical Uncertainties

Bridgette Randall
30 May, 2025
London

Stock market indexes across Europe struggled to advance on the final trading day of May, as investors remained defensive amid persistent uncertainties surrounding the U.S. trade policy. 

Benchmark indexes in Frankfurt, Paris, Milan, and London flatlined as a U.S. court reinstated global tariffs imposed by the Trump administration in less than 24 hours after they were deemed illegal by another court.  

The rapid shift in the U.S. trade policy and rules reinforces the world view that the current administration lacks a deeper understanding of the legalities of international trade and is deficient in professional resources to devise sound and stable policies.

World markets have lost and regained trillions of dollars since the launch of global tariffs by the U.S. president on April 2, and the turbulent U.S. trade policy over the last two months has disrupted trade with its key trading partners. 

Closer to home, Spain's consumer price inflation decelerated for the third consecutive month in May to 1.9%, according to the National Statistics Institute. 

The slowdown in inflation was mainly driven by a steep fall in leisure and culture prices and an additional contribution by a sharp fall in transportation prices. 

Germany's retail sales struggled to advance on a monthly basis in April, as consumers avoided large-ticket items, according to the latest data available from Destatis. 

Monthly retail sales declined by 1.1% in April from the upwardly revised 0.9% increase in March, marking the first decline in four months. 

Over the year, retail sales increase slowed to 2.3% from 3.3% in March, and the increase was driven by a 2.3% rise in food sales and a 2.6% increase in non-food sales.  

 

Europe Indexes and Yields

The DAX index increased by 0.2% to 23,974.84, the CAC-40 index edged lower 0.3% to 7,757.64, and the FTSE 100 index advanced 0.4% to 8,754.84.

The DAX increased 0.8% and 7.3%, the CAC-40 index decreased a fraction and rose 2.7%, and the FTSE 100 index edged up 0.5% and 3.3% for the week and in May, respectively. 

The yield on 10-year German bonds inched lower to 2.50%, French bonds decreased to 3.17%, the UK gilts moved down to 4.64%, and Italian bonds edged higher to 3.49%.

The euro decreased to $1.13; the British pound was lower at $1.34; and the U.S. dollar was higher and traded at 82.45 Swiss cents.

Brent crude decreased $0.13 to $63.22 a barrel, and the Dutch TTF natural gas was lower by €0.13 to €34.93 per MWh.

 

Europe Movers

Automobile stocks led decliners in Europe as investors estimated U.S. trade policy-related uncertainties are likely to persist. 

Volkswagen Group decreased €95.28, Mercedes-Benz dropped 0.3% to €53.05, Stellantis NV added 0.4% to €9.10, and Renault SA eased 0.2% to €45.86. 

Chemical companies traded lackluster amid worries that the Trump administration is looking for ways to impose additional tariffs on European shipments. 

Sanofi SA dropped 5.7% to €86.73, BASF rose 1% to €43.04, Bayer AG gained 0.2% to €24.77, Novartis AG added 1.5% to CHF 94.08, and Sika AG inched up 0.8% to CHF 222.30.