Major European Markets Recover After Early Setback, Close On Firm Note

(RTTNews) - Despite an early struggle, the major European markets turned in fairly steady performance as the session progressed on Thursday to eventually close on a firm note. Easing concerns about tariffs and U.S. inflation, and some encouraging regional economic data helped underpin sentiment.

The pan European Stoxx 600 climbed 0.56%. The U.K.'s FTSE 100 gained 0.57%, France's CAC 40 settled higher by 0.21% and Germany's DAX closed 0.72% up, while Switzerland's SMI climbed 0.78%.

Among other markets in Europe, Belgium, Czech Republic, Denmark, Finland, Norway, Portugal, Spain and Sweden ended higher.

Austria, Greece, Iceland, Ireland, Poland, Russia and Turkiye closed weak, while Netherlands settled flat.

In the UK market, Hikma Pharmaceuticals climbed nearly 7%. JD Sports Fashion gained about 4.7% and Fresnillo rallied nearly 4%.

Compass Group, BAE Systems, National Grid, United Utilities, British Land Company, Vodafone Group, Aviva, IAG, Smith & Nephew and Convatec Group also ended sharply higher.

3i, The Sage Group, BP, Anglo American Plc and Admiral Group lost 2.4 to 4.4%.

In Germany, Rheinmetall surged about 5.4%. Bayer, Deutsche Telekom, Siemens Energy, MTU Aero Engines, Hannover Rueck, Vonovia and Fresenius gained 2 to 3%.

Merck closed down more than 6% after the company lowered its full-year guidance. BMW ended lower by about 5.7%, while Adidas, Commerzbank, Infineon, Daimler Truck Holding, Sartorius, Porsche, Brenntag, Allianz and Siemens lost 1 to 2.2%.

Thyssenkrupp shares tanked 12.5% as the company's operating profit plunged in the second quarter, hurt by economic uncertainty due to higher tariffs, notably in automotive and steel.

The company saw a 90% drop in quarterly adjusted EBIT to 19 million euros ($21 million), significantly lower than forecast.

In the French market, Engie climbed nearly 4% on strong results and earnings guidance.

Unibail Rodamco, Thales, Danone, Vinci, Orange, Air Liquide, Eurofins Scientific, Veolia Environment, Essilor and Sanofi gained 1 to 3%.

Kering ended nearly 5% down. LVMH closed lower by about 3.7%. Pernod Ricard, ArcelorMittal, Edenred, Stellantis and Saint-Gobain also ended notably down.

Data from Eurostat showed Eurozone industrial output increased 2.6% on a monthly basis, following a monthly growth of 1.1% in February. Output was expected to climb 1.7%.

Year-on-year, industrial production logged an increase of 3.6% after rising 1% in February. This was also better than forecast of 2.5%. Industrial production increased 2.6% on a monthly basis,

A separate data from Eurostat showed the euro area economy grew at a slower than initially estimated pace in the first quarter, according to a flash estimate.

Gross domestic product expanded 0.3% on a quarterly basis, which was revised down from 0.4% estimated on April 30. This followed fourth quarter's 0.2% expansion.

On a yearly basis, economic growth remained unchanged at 1.2% in the first quarter and matched estimated.

Data from the statistical office INSEE showed France's consumer price inflation remained at 0.8% in the month of April, the same rate as seen in March and February. The figure also matched the estimate published on April 30.

On a monthly basis, consumer price inflation rose to 0.6% from 0.2%. The April rate was revised up from 0.5%.

Data from Destatis showed whole sale prices in Germany grew 0.8% year-on-year in April, following a 1.3% rise in March.

The overall inflation in April was due to higher prices for food products, non-ferrous ores and metals, and non-ferrous semi-finished metal products. On a monthly basis, wholesale prices dropped 0.1% in April versus an expected increase of 0.2%.

The UK economy grew more than expected in the first quarter driven by services and industrial production, the first estimate from the Office for National Statistics showed.

Gross domestic product expanded 0.7% sequentially, following a 0.1% growth in the previous quarter. GDP was forecast to advance 0.6%. Moreover, this was the fastest growth in a year.

On a yearly basis, real GDP expanded 1.3% in the first quarter compared to economists' forecast of 1.2%.