Europe midday: Shares up despite Ukraine, trade tensions
By Frank Prenesti
Date: Thursday 20 Feb 2025
(Sharecast News) - European shares were higher despite increasing tensions between the leaders of Ukraine and the US over the war with Russia and continuing trade war concerns.
The pan-regional Stoxx 600 was up 0.20% at 553 with most major bourses higher except Britain's FTSE 100, which was down 0.39%.
Relations between US President Donald Trump and Ukraine President Volodymyr Zelensky deteriorated overnight after the American leaders called his counterpart a "dictator" and made several false claims over the war.
"Gold is glittering as a safe haven as traders mull the inflationary risks of US tariffs and geo-political risks. The precious metal is riding high at record levels amid concerns about Trump's trade and foreign policy stances," said Hargreaves Lansdown analyst Susannah Streeter.
"The exclusion of Ukraine from talks and expectations any negotiations will take longer has led to some volatility in Brent Crude. Prices have headed above $76 a barrel after falling back."
"Downwards pressure had been building following indications of a build-up of oil stocks in the US. But ongoing military action in Ukraine and a drone strike on a pipeline in Kazakhstan has added to supplies concerns.
Trump said his proposed tariffs on autos, chips and pharmaceutical imports could be implemented by April 2.
In economic news, Germany's producer prices rose 0.5% in January compared to the same month in 2024, according to fresh data released on Thursday by the Federal Statistical Office, Destatis.
The annual increase was mainly driven by higher prices for non-durable consumer goods, capital goods, and durable consumer goods. However, producer prices edged down by 0.1% from December 2024.
Production in the eurozone construction sector remained stable in December, while rising by 0.4% in the wider European Union, according to preliminary data released by Eurostat. That followed growth of 0.6% in the euro area and 0.8% in the EU in November.
In equity news, shares in British Gas owner Centrica powered ahead after annual results.
Dutch insurance giant Aegon slumped despite posting a net profit of €741m for the second half of 2024. Schneider Electric was up after the electrical equipment maker forecast a bigger-than-expected rise in its 2025 profit margin.
Shares in Carrefour fell sharply after the French retailer warned on softer consumer demand and said it expected "slight" growth in free cash flow and 2025 operating profit.
Airbus shares fell as the plane maker reported an 8% year-on-year drop in adjusted operating profit to €5.35bn despite a 6% jump in revenue.
Tenaris fell as the Italian steel pipes maker warned that a US tariff increase on steel and aluminium would create a "high level of uncertainty".
Reporting by Frank Prenesti for Sharecast.com
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