Europe midday: Shares up as eurozone GDP beats forecasts
By Frank Prenesti
Date: Wednesday 30 Apr 2025
(Sharecast News) - European markets were at midday on Wednesday, amid a better-than-expected rise in eurozone GDP, another dump of quarterly earnings and news of a slowdown in China manufacturing activity in response to US tariffs.
The Stoxx 600 index was up 0.41% at 527 after extending its longest winning streak since January on Tuesday.
Auto stocks were also in focus after US President Donald Trump signed an executive order easing some of 25% punitive tariffs on the sector amid fears they could hurt US factories.
"Trump has offered some concessions to the hard-hit auto industry, by offering a limited rebate on the 25% import tariffs on components, if the vehicles are assembled in the US, but it's a small gesture given the huge swathe of duties set to hit the US economy," said Hargreaves Lansdown analyst Susannah Streeter.
"Importers have been stockpiling goods to try to limit the immediate damage, which has caused the US trade deficit to swell to record levels, the exact opposite of what the administration wants to see."
"Investors are bracing for a snapshot of growth in the economy later, with the GDP reading for the first quarter set to show a sharp slowdown in activity, and that's before Trump's infamous Liberation Day speech prompted a further deterioration in sentiment."
The eurozone economy expanded by 0.4% in the first quarter of 2025, according to preliminary figures released by the European Union's statistics agency Eurostat. The outcome, which marks the fifth consecutive quarter of growth, beat forecasts of a 0.2% rise.
Meanwhile, factory activity across China contracted at the fastest pace in 16 months in April, according to a survey published on Wednesday.
The official manufacturing purchasing managers' index fell to 49, its weakest level since December 2023, and down from a 50.5 reading last month. Any reading below 50 indicates contraction.
In equity news, Evolution Gaming slumped as the online gambling games developer missed quarterly earnings estimates.
Danish transport and logistics company DSV surged after completing the acquisition of Schenker from Deutsche Bhan.
France's TotalEnergies fell after posting a sharp fall in first-quarter profit, following a period of lower crude prices and weak refining margins.
Credit Agricole fell after the French bank reported a drop in first-quarter profit.
Mercedes was lower after the automaker pulled its 2025 earnings outlook, citing volatility from US tariffs.
Reporting by Frank Prenesti for Sharecast.com
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