Europe midday: Stocks edge higher amid earnings barrage
By Benjamin Chiou
Date: Tuesday 29 Apr 2025
(Sharecast News) - European stocks were rising for the sixth straight day on Tuesday as markets continued to claw their way back to levels seen before Donald Trump's trade tariffs were first announced, though gains were limited as investors digested a flurry of corporate earnings and economic data.
The Stoxx 600 was up 0.4% at 525.15, having risen 3.7% over the past six sessions, though still remains below the the 537 mark seen before Trump's so-called "Liberation Day" started a global trade war on 2 April.
Benchmark indices in London, Frankfurt and Milan were rising, offsetting a flat performance in Paris and falls in Madrid.
Chris Beauchamp, chief market analyst at IG, said markets "remain on edge" ahead of barrage of earnings reports from US Big Tech names later this week, including Amazon, Microsoft and Meta, along with general tariff-related uncertainty.
"Nerves remain frayed after the gut-wrenching volatility of early April, though earnings season so far, and the lack of any tariff headlines, has helped a calmer atmosphere to prevail for now," Beauchamp said.
In economic news, the European Commission's eurozone economic sentiment indicator fell by 1.4 points to 93.6, coming in below the 94.5 consensus estimate. Carsten Brzeski, global head of macro at ING, warned of "subdued" sentiment and economic activity over the coming months if there are no major changes to US trade policy.
In contrast, the GfK German consumer climate indicator rose 3.7 points to -20.6 for May, surprising economists who had pencilled in a deterioration to -26. This was the highest reading since November as measures for income expectations and a willingness to buy both rose.
Blue chip earnings in focus
German luxury carmaker Porsche was flat after slashing its full-year guidance for sales and profits due to impact of an ongoing trade war and challenges in the electric vehicle market. The company said on Tuesday that it now expects sales revenues to total €37-38bn this year, down from €40.1bn in 2024 and an earlier guidance range of €39-40bn.
Volvo shares edged lower in Stockholm as the carmaker reported a sharp fall in first-quarter profits and suspended its full-year guidance due to market headwinds.
However, despite the gloomy outlooks, share prices across the sector were supported by newsflow from Washington DC, where commerce secretary Howard Lutnick said that a "deal" had been reached regarding trade tariffs on US auto imports - though no specific details were given.
Adidas posted a surge in sales and profits, but shares edged lower after the sportswear brand warned that Trump's tariff regime would likely result in higher prices going forward. Revenues strengthened 13% in the first three months of the year to €6.15bn while operating profits jump 82%.
In London, AstraZeneca underwhelmed with 10% constant-currency increate in first-quarter revenues and a confident outlook, with the stock in the red by lunchtime. Chief executive Pascal Soriot said the pharma giant has now entered "an unprecedented catalyst-rich period".
Primark owner Associated British Foods was a heavy faller after reporting that first-half profits fell by a tenth with sales slightly behind last year, as growth in retail and food ingredients was offset by a "frustrating" performance in the sugar division.
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