European Shares Rise On Trade Deal Hopes

(RTTNews) - European stocks opened higher on Wednesday amid expectations of a potential trade deal with the United States.

Media reports suggested that China had quietly compiled a list of U.S.-made goods exempt from its 125 percent tariffs - seeking to ease trade tensions without public concessions.

U.S. President Donald Trump said he believes the U.S. will have a deal with India on trade.

The White House has also had "substantial talks" with Japan, and "the contours of a deal" with South Korea could be coming together, Treasury Secretary Scott Bessent said.

Investors were also reacting to mixed regional data. Preliminary data showed the Eurozone economy expanded by 0.4 percent in the three months to March of 2025 after growing by 0.2 percent in the fourth quarter of 2024.

The German economy recovered in the first quarter driven by higher private consumption and investment, flash data from Destatis revealed today.

Gross domestic product grew 0.2 percent sequentially, offsetting the 0.2 percent fall in the preceding quarter. The rate also matched economists' expectations.

Retail sales fell 0.2 percent on a monthly basis in March but reversed a 0.2 percent rise in February, separate data revealed. Sales were expected to decline 0.4 percent.

Elsewhere, U.K. house price declined more than expected in April following the end of stamp duty holidays, data from the Nationwide Building Society showed.

House prices logged a monthly drop of 0.6 percent after remaining flat in March. The decline was worse than economists' forecast of 0.1 percent.

In France, the economy avoided a technical recession in the first quarter with a marginal expansion.

GDP grew 0.1 percent from the fourth quarter, when the economy shrank 0.1 percent, according to flash data from the statistical office INSEE.

The pan European STOXX 600 was up 0.2 percent at 525.87 after rising 0.4 percent on Tuesday.

The German DAX rose 0.4 percent, France's CAC 40 added 0.3 percent and the U.K.'s FTSE 100 was marginally higher.

Logitech International rose 1.2 percent. The computer parts maker outlined plans to mitigate the impact of U.S. tariffs after reporting a 7 percent net sales growth for fiscal year 2025.

German engine maker Deutz AG rallied 2.5 percent after confirming its annual targets. Stellantis NV rose nearly 2 percent. The parent company of Jeep, Peugeot and Fiat, suspended its 2025 earnings forecast, citing U.S. tariff uncertainties.

Mercedes-Benz fell about 1 percent as it reported a decline in car business profitability for the first quarter.

French lender Credit Agricole slumped 4.2 percent after reporting a drop in first-quarter profit.

Peer Societe Generale climbed 3.3 percent after reporting a sharp rise in first-quarter earnings.

Banco Santander lost 4 percent after its Brazilian, British and Mexican units missed first-quarter net income estimates.

Prudential fell 2.4 percent despite the insurer reporting a 12 percent rise in new business profit for the first quarter.