European Stocks Advanced as Corporate Earnings Regained Spotlight

Bridgette Randall
18 Jul, 2025
London

Stock market indexes in Europe rebounded on Friday as investors reviewed the latest batch of positive corporate results. 

Benchmark indexes in Frankfurt, Paris, Milan, and London advanced and extended weekly gains to between 0.7% and 1.8%. 

Market sentiment recovered this week as investors shifted their attention from the ongoing trade talks to the start of the earnings season. 

Despite the market rebound, negotiators are far from an agreement with the U.S., and the region could face as much as an additional 25% tariff beginning August 1. 

On the economic front, Germany's producer price index fell 1.3% in June, following a 1.2% drop in May, the Federal Statistical Office, or Destatis, reported Friday. 

The producer prices declined for the fourth consecutive month and fell at the fastest pace since September 2024. 

The overall decline was driven by a 6.4% fall in energy costs and 0.4% weakness in the intermediate goods, offset by an increase of 3.6% in non-durable consumer goods, a rise of 1.7% in durable consumer goods, and capital goods. 

 

Europe Indexes

The DAX index in Frankfurt advanced 0.4% to 24,466.06, the CAC-40 index in Paris edged higher 0.6% to 7,870.05, and the FTSE 100 index increased 0.2% to 8,990.92. 

 

Europe Movers

Reckitt Benckiser Group plc increased 0.7% to 5,020.0 pence, and the company agreed to sell its essential home business unit to Advent International for $4.8 billion. 

Reckitt plans to retain a 30% stake in the company, and the company plans to return excess capital to shareholders, including a $2 billion special dividend. 

Electrolux AB Class B decreased 14.3% to SEK 61.52, despite the household appliance maker reporting improving second-quarter results amid market challenges. 

Net sales in the quarter decreased to SEK 31.3 billion from SEK 33.8 billion, driven by growth in North America and Latin America, partly offset by a slight decline in Europe, Asia-Pacific, the Middle East, and Africa.

Net income swung to a profit of SEK 178 million from a loss of SEK 80 million, and earnings per share improved to SEK 0.66 from a loss of SEK 0.30 a year ago. 

The company reiterated its annual outlook and said that it plans to pass on to consumers tariff-related costs in North America. 

Saab AB jumped 10.6% to SEK 532.20 after the Swedish defense and aerospace company reported strong results in the second quarter. 

Revenue in the quarter jumped 32% to SEK 19.7 billion from SEK 15.2 billion, net income jumped 52% to SEK 1.5 billion from SEK 1.0 billion, and diluted earnings per share advanced 53% to SEK 2.83 from SEK 1.85 a year ago. 

New order inflow in the quarter slowed to SEK 28.40 billion from SEK 39.6 billion a year ago. 

Burberry Group plc increased 4.9% to 1,309.50 pence after the fashion group's sales in the quarter surpassed market expectations. 

Revenue in the fiscal first quarter ending in June declined to £433 million from £458 million, and comparable store sales decline slowed to 1% from 21% a year ago. 

Comparable sales in the Americas increased 4%, in Greater China advanced 5%, and in the Middle East, Europe, and Africa inched higher 1%. 

The company stressed that it is still in the "early stages of its turnaround," and the macroeconomic environment remains "uncertain."