European Markets Trim Weekly Losses, UK Food Store Sales Drop Drags Down Retail Sales In May

Bridgette Randall
20 Jun, 2025
London

European markets advanced on Friday and halted a three-day losing streak amid heightened geopolitical uncertainties. 

Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher after diplomats from the European Union and Iran agreed to meet. 

Crude oil prices traded near this year's high after a lull in the Israel-Iran airstrikes raised hopes for a temporary ceasefire. 

Moreover, a White House official confirmed that the U.S. president will make a decision to participate in Israel's strike targeting underground nuclear infrastructure. 

Israel's unilateral strikes on Iran are based on claims that the Muslim nation is close to making a nuclear bomb, reminding us of the U.S. and Israel's false and misleading claims in the run-up to Iraq's war.

On the economic front, the U.K.'s annual retail sales in May fell 1.3% after rising in the previous three consecutive months. 

The annual retail sales declined for the first time in four months and fell the most since April 2024. 

On a monthly basis, retail sales fell 2.7%, reversing the upwardly revised 1.3% in April, the Office for National Statistics announced Friday.

The monthly decline in retail sales was largely driven by a 5% fall in food store sales after supermarkets curtailed promotional activities. 

The monthly food sales decline was the largest since May 2021.

 

Europe Indexes and Yields

The DAX index increased by 0.7% to 23,210.59, the CAC-40 index edged higher by 0.5% to 7,589.30, and the FTSE 100 index advanced 0.3% to 8,818.87.

The yield on 10-year German bonds inched lower to 2.49%, French bonds decreased to 3.24%, UK gilts moved down to 4.51%, and Italian bonds edged lower to 3.51%.

The euro increased to $1.15; the British pound was higher at $1.35; and the U.S. dollar was lower and traded at 81.57 Swiss cents.

Brent crude decreased $0.03 to $76.67 a barrel, and the Dutch TTF natural gas was lower by €1.55 to €39.93 per MWh.

 

Europe Stock Movers 

Energy complex stocks lacked direction amid heightened tensions in the Middle East. 

BP plc decreased 1% to 389.25 pence, Shell PLC declined 0.5% to 2,684.0 pence, and TotalEnergies SE dropped 0.8% to €54.45. 

Kering SA jumped 3% to €180.16, LVMH edged up 0.1% to €453.10, and Hermes International SCA edged up 0.1% to €2,229.0.