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European equity markets opened modestly higher on Wednesday, extending a cautious rally as investors juggled a wave of corporate earnings results and awaited critical economic data from the eurozone.
- DAX (Germany): +0.3%
- CAC 40 (France): +0.2%
- FTSE 100 (U.K.): +0.2%
(as of 07:02 GMT)
The Stoxx 600 index posted its sixth consecutive session of gains on Tuesday — its longest winning streak since January — but is still set to close April with a 1.5% monthly loss, largely due to concerns around trade policy instability from the U.S.
Corporate Earnings in Focus
A number of major European firms posted results this morning, many under pressure from the ongoing U.S.-China trade war and President Trump’s tariff volatility.
Auto Sector Struggles:
- Stellantis: Revenue -14% in Q1; suspended full-year guidance due to U.S. tariff uncertainty.
- Mercedes-Benz: Profit fell sharply; guidance withdrawn for 2025.
- Volkswagen: Significant profit decline; U.S. tariffs expected to remain a headwind.
Energy and Banking:
- TotalEnergies: Adjusted net income -17%, hit by weak refining margins and lower oil prices.
- Barclays: Slight earnings beat thanks to robust investment banking performance.
- UBS: Q1 profit ahead of expectations, helped by gains in investment banking and reductions in non-core risk assets.
Key Economic Data: Mixed Signals
- Germany Retail Sales (March): Fell by 0.2%, better than expected (-0.4%).
- France Q1 GDP: +0.8% YoY – soft but positive growth.
- Eurozone Q1 GDP and German inflation data: Due later today and could bolster expectations of a June rate cut by the ECB.
China Warning Sign:
- China’s April Manufacturing PMI: Fell to 49.0 from 50.5 — its first contraction since Dec. 2023 — signaling pressure from the deepening U.S.-China trade war.
Looking Ahead
- Eurozone growth and inflation data later today may shape ECB rate expectations.
- In the U.S., GDP and the core PCE index will set the tone for monetary policy.
- Friday’s nonfarm payrolls report remains the key data point for global markets this week.
