Europe close: Stocks continue to grind higher
By Alexander Bueso
Date: Tuesday 15 Apr 2025
(Sharecast News) - European stock markets extended gains on Tuesday as investor concerns surrounding trade uncertainty continued to ease, with strong performances in the auto sector and a host of positive corporate earnings providing a lift.
The Stoxx 600 index was up 1.34% at 506.59, heading for the first close above 500 since 3 April, with gains of 1% or higher seen across London, Frankfurt, Milan and Madrid. Paris, however, rose just 0.57% as weakness in the luxury sector limited upside.
Markets rose on Monday after the news that the Trump administration had exempt Chinese-made smartphones and certain consumer electronics from trade tariffs, raising hopes that the two economic powerhouses could potentially reach a trade deal at some point in the future.
"The optimists are beginning to hope that the most recent pronouncements from the White House represent a dialling down of the extreme measures initially proposed, with the car industry potentially joining some of the technology sector in seeing lesser tariffs," said Richard Hunter, head of markets at Interactive Investor.
Economic data mixed
In economic news, investor sentiment in Germany fell at its sharpest rate since the start of the Russia-Ukraine war, due to the "erratic" changes in Donald Trump's tariff plan. The ZEW's forward-looking indicator of economic sentiment dropped by 65.6 points, from 51.6 in March to -14 in April, well below the consensus forecast of 9.5. This was the first reading below zero since October 2023 and the lowest print since July 2023.
Eurozone industrial production rose by 1.1% in February, accelerating after a revised 0.6% increase the month before. This was comfortably ahead of the 0.2% increase expected and the highest growth rate since August 2024.
Meanwhile, the UK unemployment rate held steady at 4.4% in the three months to February, while average weekly earnings excluding bonuses rose by 5.9%, up from 5.8% previously, according to the Office for National Statistics.
Market movers
Oil group TotalEnergies rose in Paris after saying that it expects an increase in production over the first quarter, along with a rise in its refining margins, while French advertising giant Publicis gained after a 4.9% increase in organic revenues beat forecasts.
German personal care products maker Beiersdorf was in demand after topping sales forecasts with its first-quarter results, as the company reiterated its full-year outlook.
Shares in De La Rue surged after the UK banknote printer agreed to be bought by US investment firm Atlas in a £263m deal.
Also in London, discount retailer B&M put in solid gains after saying that full-year adjusted profits would be above the mid-point of guidance.
Leading the fallers on the Stoxx 600 was Dutch surveying services firm Fugro, which tanked 17% after a profit warning, cutting its estimates for first-quarter revenues and earnings.
Luxury stocks were firmly out of favour after LVMH missed forecasts with an unexpected decline in first-quarter sales. Sector peers Dior, Kering, Burberry, Puig Brands, and Pernod Ricard all fell sharply.
In contrast, European carmakers were in demand on hopes that the EU can strike an improved deal with the US over auto trade tariffs. Volvo, BMW, Mercedes, Renault and Stellantis all put in decent gains.
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