European Markets End on a High, FTSE 100’s Winning Streak Continues Amid Trade Uncertainty

European stock markets closed higher on Thursday, with most sectors seeing gains despite ongoing concerns about trade uncertainties. The pan-European Stoxx 600 index rose by 0.38%, while major bourses like Germany’s DAX and France’s CAC also posted positive numbers. The UK’s FTSE 100 saw a marginal increase of 0.1%, marking its ninth consecutive day of gains, the longest winning streak since 2019. These positive movements followed a recovery in global markets, driven by reduced fears of an escalating US-China trade war.

Global sentiment shifted positively after a slight easing of trade tensions between the US and China. On Wednesday, US stocks surged following President Trump’s reassurance that he would not remove Federal Reserve Chairman Jerome Powell, alleviating concerns over central bank independence. This optimism continued into Thursday as Asian markets showed mixed performances. Analysts noted that while the global trade situation remains uncertain, investor sentiment has improved, and markets were responding cautiously to the situation.

Corporate earnings reports in Europe were a focal point, with notable stocks like Kering and Delivery Hero seeing declines. Kering, the luxury goods group, saw its shares fall by 6% after disappointing first-quarter results, largely driven by a slump in Gucci sales. Similarly, Delivery Hero’s shares dropped despite reporting a 5% increase in e-commerce sales. On the other hand, companies like Unilever exceeded market expectations, reporting a solid sales growth of 3%, which helped boost investor confidence in the consumer goods sector.

Amid the positive market trends, concerns over geopolitical issues and their economic impact lingered. Austrian central bank governor Robert Holzmann suggested that the European Central Bank would hold off on further interest rate cuts until there was more clarity on US tariffs and potential European countermeasures. Additionally, Germany revised its growth outlook, citing the negative effects of US trade policies on its export-dependent economy. This combination of trade uncertainties and regional economic challenges highlights the complex environment in which European markets are operating.

Source: CNBC