Market Summary: European Stock Markets React to Economic Data and Geopolitical Developments
European equities closed on a positive note during Thursday’s trading session, buoyed by an influx of corporate earnings, economic indicators, and rising optimism regarding a possible resolution to the ongoing conflict between Russia and Ukraine.
The European Stoxx 600 index experienced an increase of 5.97 points, or 1.09%, concluding at 553.75 points—marking a new milestone.
Germany’s DAX index recorded a notable rise of 463.99 points, equivalent to 2.09%, closing at 22,612.02 points, representing its most significant daily gain in two years.
In contrast, the UK’s FTSE 100 index declined by 42.72 points, or 0.49%, finishing at 8,764.72 points.
The French CAC 40 index surged by 121.92 points, or 1.52%, ending the session at 8,164.11 points.
The upward momentum in many markets comes as investors anticipate the announcement of a new customs recognition package from U.S. President Donald Trump, who hinted at a major development on social media: “Today is the big event: mutual customs recognition!!!”
This response is expected to target nations imposing tariffs on U.S. imports, though certain sectors may be considered for exemptions.
Among the standout performers in the European markets was Siemens Technology, whose shares soared by over 7% following the release of better-than-expected profit figures for the first fiscal quarter, despite a reported “significant decline” in factory automation work.
The anticipated resolution of the conflict between Ukraine and Russia is further fueling market gains as discussions of peace become a more tangible prospect.
On Wednesday, President Trump indicated that he had spoken with both Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky, conveying their mutual desire for peace. He instructed U.S. officials to commence discussions aimed at resolving the war.
However, the decline in the FTSE 100 index was primarily influenced by downturns in the banking and oil sectors. Shares of Barclays Bank fell by 4.7%, despite the institution exceeding annual profit expectations and announcing a £1 billion (approximately $1.25 billion) share buyback program.
Meanwhile, consumer goods giant Unilever saw a decrease of 5.6% because of weaker-than-expected sales growth figures.
Investors are also processing data released by the UK’s National Statistical Office, which indicated a 0.1% growth in the UK economy for the fourth quarter of 2024, a contrast to initial expectations of a contraction by 0.1%.
“The U.S. GDP in the fourth quarter was more favorable than anticipated, although the underlying details were less impressive. Ultimately, the growth could be attributed to population increases, as per capita GDP slightly declined over the year.
For more updates, subscribe to our newsletter.
