{"id":120256,"date":"2025-10-23T17:19:28","date_gmt":"2025-10-23T13:19:28","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=120256"},"modified":"2025-10-24T12:29:11","modified_gmt":"2025-10-24T08:29:11","slug":"european-markets-gain-on-us-china-thaw-defense-stocks-surge-on-earnings","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/european-markets-gain-on-us-china-thaw-defense-stocks-surge-on-earnings\/10\/23\/market-updates\/","title":{"rendered":"European Markets Gain on US-China Thaw, Defense Stocks Surge on Earnings"},"content":{"rendered":"\n

<\/h2>\n\n\n\n

European stocks opened higher on Friday, with market sentiment buoyed by the prospect of de-escalating U.S.-China trade tensions<\/strong>. The DAX index<\/strong> in Germany gained 0.2%, the CAC 40<\/strong> in France climbed 0.3%, and the FTSE 100<\/strong> in the U.K. rose 0.1% as investors cheered the confirmation of a high-stakes meeting.<\/p>\n\n\n\n

Trade Dialogue Revived as US-China Leaders Set to Meet<\/h3>\n\n\n\n

The White House confirmed<\/strong> that President Donald Trump will meet Chinese President Xi Jinping next week during the APEC summit in South Korea.<\/sup> This development offered a significant relief to global markets, which had been rattled by recent tit-for-tat escalations, including Washington\u2019s threat of 100% tariffs and Beijing\u2019s curb on rare earth materials<\/strong> exports. The planned dialogue offers a critical opportunity for the world\u2019s two largest economies to ease trade disputes that have clouded the global outlook for months.<\/p>\n\n\n\n

Separately, President Trump announced that trade negotiations with Canada had been terminated, citing a “fraudulent” Canadian advertisement.<\/p>\n\n\n\n

Corporate Earnings Highlight Defense and Healthcare Strength<\/h3>\n\n\n\n

The corporate earnings season continued to drive individual stock movements in Europe:<\/p>\n\n\n\n

    \n
  • Sanofi (EPA:SASY)<\/strong> reported a better-than-expected rise in profit, largely lifted by robust demand for its blockbuster skin and asthma drug, Dupixent<\/strong>.<\/li>\n\n\n\n
  • Defense stocks<\/strong> showed strength, with Swedish defense group Saab (ST:SAABb)<\/strong> raising its sales guidance after reporting a rise in third-quarter profit, a clear reflection of soaring global military spending<\/strong>.<\/li>\n\n\n\n
  • French aerospace and defense supplier Safran (EPA:SAF)<\/strong> also raised its full-year 2025 outlook, boosted by record production of the LEAP engine and a strong performance in its civil engine aftermarket services.<\/li>\n\n\n\n
  • Swiss elevator and escalator maker Schindler (SIX:SCHN)<\/strong> lifted its 2025 EBIT margin guidance after higher operating profit, though the company noted weakness in new installation orders due to foreign exchange effects and softer demand in China.<\/li>\n\n\n\n
  • In contrast, industrial chemicals maker Sika (SIX:SIKA)<\/strong> reported a drop in nine-month sales and announced plans for structural changes, including cutting up to 1,500 jobs in persistently weak markets.<\/li>\n<\/ul>\n\n\n\n

    Economic Focus Shifts to US Inflation<\/h3>\n\n\n\n

    In regional economic news, the U.K. retail sales<\/strong> for September surprised economists by rising 0.5%<\/strong> month-on-month, suggesting British consumers may be weathering the economic headwinds better than anticipated.<\/p>\n\n\n\n

    However, the main macroeconomic event remains the delayed release of the U.S. Consumer Price Index (CPI)<\/strong> for September, which was finally made possible despite the ongoing U.S. government shutdown.<\/sup> The U.S. core consumer price index<\/strong> is widely expected to hold steady at 3.1%. A reading in line with consensus is unlikely to impact the market’s strong expectation of a 25-basis-point rate cut<\/strong> from the Federal Reserve next week.<\/p>\n\n\n\n

    Crude Oil Poised for Big Weekly Gain<\/h3>\n\n\n\n

    Oil prices saw a slight retreat on Friday but remained on track for a hefty weekly gain of around 7%<\/strong>, which would be the largest since mid-June. The surge was fueled by the Trump administration’s new sanctions targeting Russia\u2019s two biggest oil companies, Rosneft and Lukoil<\/strong>, over the war in Ukraine.<\/sup> Since these two companies account for over 5% of global output, the move instantly raised supply concerns. Brent futures<\/strong> fell 0.7% to $65.53 a barrel, and U.S. West Texas Intermediate crude futures<\/strong> fell 0.7% to $61.39 a barrel, following a jump of more than 5% on Thursday.<\/p>\n","protected":false},"excerpt":{"rendered":"

    European stocks opened higher on Friday, with market sentiment buoyed by the prospect of de-escalating U.S.-China trade tensions. The DAX index in Germany gained 0.2%, the CAC 40 in France climbed 0.3%, and the FTSE 100 in the U.K. rose 0.1% as investors cheered the confirmation of a high-stakes meeting. Trade Dialogue Revived as US-China …<\/p>\n","protected":false},"author":9,"featured_media":98251,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,6827,49,36],"tags":[],"class_list":["post-120256","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-daily-economic-reports","category-economic-reports","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/120256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=120256"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/120256\/revisions"}],"predecessor-version":[{"id":120290,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/120256\/revisions\/120290"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/98251"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=120256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=120256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=120256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}