European stock markets climbed on Thursday as investors reacted positively to a wave of corporate earnings and optimism over a potential trade agreement between the United Kingdom and the United States.
As of 10:08 a.m. London time, the pan-European Stoxx 600 index rose 0.5%, with gains across most sectors and all major exchanges. The UK’s FTSE 100 added 0.2%, while France’s CAC 40 and Germany’s DAX increased by 0.8% and 1% respectively.
Reports suggest the UK is close to signing a trade deal with the US, potentially becoming the first nation to finalize such an agreement after the world’s largest economy introduced steep “reciprocal” tariffs in April on both allies and adversaries.
On the corporate front, earnings updates from a wide range of companies drove market sentiment. Key names reporting included Maersk, Siemens Energy, Heidelberg Materials, Henkel, Infineon, Lanxess, Puma, Rheinmetall, Bosch, Norwegian Air, Swisscom, Zurich Insurance, Adecco Group, InterContinental Hotels Group, and Banco Sabadell.
The Bank of England is set to announce its latest monetary policy decision later in the day, with markets widely anticipating a rate cut. In contrast, Sweden’s central bank left its benchmark rate unchanged at 2.25% on Thursday, citing global economic uncertainty triggered by US President Donald Trump’s trade policies. Similarly, Norway’s central bank held rates steady on Wednesday, noting that growing trade barriers were creating future policy uncertainties.
In the US, the Federal Reserve opted to maintain interest rates in the 4.25%-4.5% range, a level that has been in place since December. Chair Jerome Powell warned that the substantial tariff hikes could slow economic growth and contribute to longer-term inflation pressures.
Meanwhile, overnight trading in Asia-Pacific markets was mixed, as investors awaited progress from upcoming US-China trade negotiations. US Treasury Secretary Scott Bessent and China’s finance minister are scheduled to meet this week in Switzerland to address deep-seated economic and trade tensions.
Maersk Lowers Container Market Prospect Due to Trade Tensions
Danish shipping giant Maersk, often seen as a bellwether for global trade, reported stronger-than-expected first-quarter EBITDA of $2.71 billion, up 70% year-over-year and ahead of analyst estimates of $2.57 billion. However, the company lowered its container market forecast, citing the disruptive impact of current US-China tariffs.
Sweden Keeps Interest Rates Unchanged Amid Global Uncertainty
The Swedish central bank held its key interest rate at 2.25%, despite a slight rise in inflation to 2.3%. Policymakers expect inflation to stabilize but highlighted increased international uncertainty as a drag on Sweden’s economic outlook. Officials pointed specifically to new US tariffs as a threat to European demand and price pressures.
Banco Sabadell Reports Strong Q1 Results Amid Takeover Talks
Spain’s Banco Sabadell posted a 58.6% surge in first-quarter profit, reaching €489 million—well above expectations of €405.9 million. The announcement comes as rival lender BBVA pursues a €12 billion hostile takeover, currently under public consultation following approval by Spain’s competition authority.
Puma Holds 2025 Forecast Despite US Tariff Risks
German sportswear brand Puma confirmed its full-year outlook despite ongoing tariff concerns. While the company has already cut US imports from China, CFO Markus Neubrand noted it is still too early to quantify the full impact of tariffs. First-quarter operating profit fell 52% year-over-year to €76 million, better than analysts’ forecast of €66 million. Sales were flat at €2.07 billion, with softness in the US and China dragging down performance.
AB InBev Posts Strong Q1 Profit Despite Sales Dip
Global brewing giant AB InBev reported a 7.9% increase in first-quarter EBITDA, beating forecasts of 3.1% growth. Revenue reached $13.63 billion, slightly below analyst expectations. The company said strategic execution and resilience in core brands like Budweiser, Corona, and Stella Artois supported results. A 2.2% decline in beer volumes was less severe than expected.
Siemens Energy Upgrades Outlook But Warns on Tariff Impact
Siemens Energy posted a 20.7% annual revenue increase in its fiscal second quarter, reaching €10 billion and surpassing expectations of €9.3 billion. The company cited strong market demand but cautioned that US tariffs could result in a multimillion-euro profit hit moving forward.
As Europe’s markets respond to both earnings and macroeconomic developments, investor focus remains on evolving trade dynamics and central bank policy decisions that could shape global financial conditions for the remainder of the year.
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