European Stocks Close On Firm Note On Easing Trade Tensions

(RTTNews) - European stocks closed on a firm note on Thursday with investors reacting to earnings, and news about an impending trade deal between the U.S. and the U.K., and digesting the Bank of England and the Federal Reserve's monetary policy moves.

The Bank of England has cut interest rate by 0.25% as widely expected, amid concerns over the potential shock to global growth due to Trump administration's tariff policies.

U.S. President Donald Trump unveiled the framework of a trade agreement with the U.K., marking the first deal since he announced new tariffs on U.S. trade partners in early April.

Trump claimed in a post on Truth Social that the agreement would raise $6 billion in external revenue from 10% on tariffs on U.K. exports and create $5 billion in new export opportunities for U.S. ranchers, farmers and producers.

"This Deal shows that if you respect America, and bring serious proposals to the table, America is OPEN FOR BUSINESS. Many more to come — STAY TUNED!" Trump said.

Treasury Secretary Scott Bessent will meet with China's lead representative on economic matters during a trip to Switzerland this weekend.

On Wednesday, the Fed held its interest rates and also warned of increasing risks of higher unemployment and higher inflation.

The pan European Stoxx 600 climbed 0.83%. The U.K.'s FTSE 100 closed higher by 0.22%, Germany's DAX and France's CAC 40 gained 1.11% and 1.12%, respectively, while Switzerland's SMI closed down 0.43%.

Among other markets in Europe, Austria, Finland, Iceland, Ireland, Netherlands, Poland, Russia, Sweden and Turkiye closed higher.

Belgium, Denmark and Greece ended weak, while Norway, Portugal and Spain closed flat.

In the UK market, Melrose Industries, IMI, Weir Group, Rolls-Royce Holdings, Whitbread, Barclays, Associated British Foods, Spirax-Sarco Engineering, Intermediate Capital, Scottish Mortgage, Bunzl, Mondi, Smiths and Natwest Group gained 2 to 5.3%.

Airtel Africa tumbed more than 8%. The telecommunications and mobile money services company reported full year 2025 profit -before-tax of $661 million compared with pre-tax loss of $63 million last year. Earnings per share for the full year were 6 cents versus loss per share of 4.4 cents last year.

Centrica lost around 7.6%, while AstraZeneca, Severn Trent, Fresnillo, Land Securities, BT, Imperial Brands, United Utilities, Rio Tinto and Unilever closed lower by 2 to 3.5%.

In the German market, Puma climbed more than 5%. The sportswear maker reported sharply lower profit in its first quarter with higher expenses and lower sales. However, the firm maintained its fiscal 2025 outlook, and said it is on track to have approximately 500 corporate positions reduced globally by the end of the second quarter 2025.

Heidelberg Materials gained nearly 5%. The company reported that its first-quarter result from current operations rose to 235 million euros from 232 million euros, a year ago.

Siemens Energy after reporting second-quarter net income of 433 million euros or 0.49 euros per share from 68 million euros or 0.08 euros per share in the same quarter last year.

Infineon is gaining more than 3.5% despite lower earnings. The semiconductor manufacturer reported profit from continuing operations before income taxes of 293 million euros for the second quarter, significantly lower than 487 million euros in the same quarter a year ago, mainly due to higher operating expenses as well as lower revenue.

BMW, Zalando, Rheinmetall, Volkswagen, Porsche, Continental, MTU Aero Engines, Daimler Truck Holding, Qiagen, Siemens, Deutsche Post and BASF also posted strong gains.

Mercedes-Benz ended lower by about 5.7%. Hannover Rueck lost about 2.7%, while Vonocia closed 1.7% down.

In the French market, Stellantis, Safran, Societe Generale, Teleperformance, Kering, Airbus, Thales, Legrand, Schneider Electric, Saint-Gobain, Michelin, Edenred, Hermes International and BNP Paribas advanced 1.3 to 3.3%.

Unibail Rodamco dropped about 4.7%. Engie, Renault and Orange also closed sharply lower.

In economic releases, Germany's industrial production increased 3% month-on-month in March, in contrast to the 1.3% decrease in February, data from Destatis revealed. Output was expected to grow 0.9%.

German exports increased 1.1% on a monthly basis in March, but this was weaker than February's 1.8% gain, separate set of data showed. Shipments were expected to climb 1%.

UK house prices rose moderately in April despite an end to the stamp duty holiday and worsening economic outlook, data published by mortgage lender Halifax revealed.

House prices climbed 0.3% on a monthly basis in April after falling for two straight months. Prices were expected to grow 0.2%, following a 0.5% drop in March and a 0.2% decrease in February. On a yearly basis, growth in house prices accelerated to 3.2% from 2.9% in the previous month.