Market Analysis

European Markets Gain on Easing Trade Fears, U.K. Retail Sales Up in March

Mellissa · 25 Apr53K Views

Image Credit: Reuters

European equity indices saw slight gains on Friday, closing out a generally positive week as investors absorbed more quarterly corporate earnings amidst ongoing trade uncertainties.

At 03:02 ET (07:02 GMT), Germany's DAX rose 0.6%, France's CAC 40 gained 0.9%, and the UK's FTSE 100 increased by 0.2%.

Trade Tensions Ease

The week has been mostly positive for European stock markets, with the initial shock from U.S. President Donald Trump’s tariff announcement earlier in the month gradually subsiding. The pan-European Stoxx 600 index has had a three-day winning streak, gaining 2.4% this week.

Investor sentiment was further lifted by a Bloomberg report indicating that China may consider exempting certain U.S. goods from its 125% import tariffs, easing some of the trade tensions between the two largest global economies.

U.K. Retail Sales Up

Another boost to optimism came from a report showing that British retail sales unexpectedly rose by 0.4% in March, following a downwardly revised growth of 0.7% in February. In the first quarter, retail sales increased by 1.6%, the best performance in four years, providing a much-needed lift to the U.K. economy, despite concerns that U.S. tariffs had negatively impacted consumer confidence.

Flood of Earnings Reports

There were numerous corporate earnings released Thursday, with notable results from both sides of the Atlantic.

In Europe, Swedish aerospace company Saab reported an 11% sales growth in Q1, driven by strong demand in global defense markets. Swiss building materials company Holcim posted stable sales, bolstered by growth in Latin America and Europe, while French jet engine maker Safran exceeded Q1 expectations and expressed strong confidence for the rest of the year.

In the U.S., Google’s parent company Alphabet surpassed revenue expectations, driven by growth in digital advertising, while Intel offered a downbeat forecast, sparking concerns about the chip sector amid the U.S.-China trade war.

Crude Prices Set for Weekly Loss

Oil prices inched higher on Friday, but both Brent and U.S. West Texas Intermediate crude futures were on track for a nearly 2% decline this week due to concerns about oversupply from OPEC. Brent futures rose 0.6% to $66.97 per barrel, and WTI gained 0.7% to $63.22 per barrel. Both contracts are set to decline amid reports that OPEC producers are pushing for increased output in June. OPEC+ will meet on May 5 to finalize these plans.