European shares rise as traders weigh mixed earnings, trade jitters
European shares climbed on Wednesday as investors assessed mixed corporate earnings and awaited key economic data, wrapping up a volatile month dominated by disruptive U.S. trade policy.
ADVERTISEMENT The pan-European STOXX 600 index was up 0.4%, as of 0716 GMT, but on track for a second consecutive monthly drop, if the current trend holds.
Other regional indexes were also trading in positive territory, except Spain, which slipped 0.5%.
The European benchmark index has clawed back over half of its losses after tumbling nearly 18% from record highs earlier this month, sparked by fears of a global recession following U.S. President Donald Trump's import tariffs.
Shares of Barclays rose 2.3% after the British bank reported a stronger-than-expected 19% rise in first-quarter profit. Danish logistic group DSV rose 9.6% after it completed a deal to acquire Germany's Schenker and provided an outlook on potential benefits from the transaction.
ADVERTISEMENT SSAB fell nearly 5% after the Swedish steelmaker reported a 57% drop in its first-quarter operating profit on Tuesday.
Investors are also awaiting growth data for France, Germany, and the broader euro zone, set to be released later in the day.
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Economic Times
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Rupee ends higher aided by mild inflows; RBI policy decision in focus
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Time of India
36 minutes ago
- Time of India
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Why is the EU still buying Russian fertilizer? (Image: AP) Amid the intense focus on the European Union's efforts to reduce imports of Russian gas and oil over the past few years, a significant product has slipped under the radar: fertilizer. Russia is a major global producer and exporter of fertilizer, which is used by farmers and food producers to provide nutrients to plants and crops. While the EU has largely cut out Russian oil and gas from its import list, it has ramped up its purchases of the country's fertilizer since Russia invaded Ukraine in February 2022. Russia's share of EU fertilizer imports has grown from 17% in 2022 to about 30% now. In 2024 alone, imports rose by more than 33% to around $2 billion (€1.75 billion). According to the MIT Observatory of Economic Complexity — a detailed trade data platform — Russia exported a total $15.3 billion worth of fertilizers in 2023, making it the largest exporter in the world. While its primary export markets are India and Brazil, the EU collectively accounts for a significant chunk of Russia's exports, weighing in at around 13% in 2023. Earlier this month, however, the European Parliament endorsed the European Commission's proposal to introduce a 6.5% tariff on fertilizers imported from Russia and Belarus. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo The plan is to continue ramping up the tariffs to 50% by 2028. Why does the EU buy so much Russian fertilizer? This can be partly explained by the type of fertilizer Russia produces and how it produces it. Russia specializes in nitrogen-based or inorganic fertilizer, which requires huge amounts of natural gas both as a raw material and to produce it. Many EU nations require nitrogen-based fertilizers because they are particularly rich in nitrogen and vital nutrients such as phosphorus and potassium. William Moseley, professor of geography at Macalester College in the USA and a member of the UN High-Level Panel of Experts for Food Security and Nutrition, told DW that Russia is particularly well-placed to meet this demand because it can use cheap gas to produce the fertilizer for far lower prices than European competitors can. The European fertilizer sector has railed against what some have said is Russia "dumping" cheap fertilizer into the EU market. When European energy prices surged and energy markets were disrupted by the invasion of Ukraine, many European producers of nitrogen-based fertilizers were forced to stop production. Now they have lost market share to Russia and are struggling to compete. What are the EU's alternatives? According to Moseley, the EU's tariff plans suggest it is serious about weaning itself off Russian fertilizer by 2028. "This will force EU countries to source inorganic fertilizer from elsewhere," he told DW, identifying China, Oman, Morocco, Canada or the US as potential alternative markets. Mosley believes other alternatives for the EU would be to turn to its own sources of nitrogen-based fertilizer — which would be very expensive, due to the gas requirements — or to ramp up the use of organic fertilizer made from manure and composted organic waste. This option, he added, was "more sustainable and better for the soil." "While it is unlikely that the EU could become totally independent of inorganic fertilizer imports, it could certainly shift the ratio towards more dependence on home-grown organic fertilizer production, especially if it is done gradually," said Mosley. The EU itself has acknowledged that it wants to move in this direction of developing fertilizer processed from animal dung and urine. Christophe Hansen, European Commissioner for Agriculture and Food, said in February that the livestock sector could "provide a positive input to the circular economy" with organic fertilizer, as it is "domestically grown and doesn't need to come from outside and is not based on high energy prices like gas." How will the EU plan work? Moseley thinks the EU fertilizer tariffs, if carried out as planned by 2028, will gradually eliminate Russian imports from the EU market. "By 2028, the duties will be so high that it will be economically unviable for the EU to import inorganic fertilizer from Russia and Belarus." The EU's sanctions will come into effect in July and specifically target agricultural products which it had neglected previously, including fertilizers. 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Mint
an hour ago
- Mint
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The market moves were bigger than expected. On March 5th German long-term yields jumped by 0.3 percentage points, the largest single-day rise in almost 30 years, and the euro surged. European stockmarkets, which would normally have suffered owing to higher rates, held on to their recent rises. Germany's bombshell of a fiscal package—currently under negotiation—represents more than just the start of deficit spending on defence. It is the beginning of a new European growth model. The continent will depend more on internal demand, and less on the world. At almost 3% of GDP, the EU's current-account surplus is hefty, with Germany and the Nordic countries leading the way. Their surpluses are caused not just by their exporting prowess, but by the gap between levels of saving and investment: if a country invests less at home than it saves, the difference becomes a capital export, and the trade balance adjusts to accommodate it. Now that Europe wants to be insulated from global shocks, invest to make its economy greener and rearm quickly in order to repel Russia, saving and investment will have to shift back into balance. There are good reasons to think this will happen. To deter Russia, defence experts believe that Europe will have to spend 3.5% of GDP a year on its armed forces, which could rise depending on the level of American support. Few politicians want to pay for this with cuts elsewhere. As Johannes Marzian and Christoph Trebesch of the Kiel Institute, a think-tank, note, military build-ups are almost always funded with a mix of debt and higher taxes. Given the low existing debt burdens in northern and central European countries, deficit funding will almost certainly be the preferred option this time round. Another reason is provided by Europe's shift from being an ageing society to a straightforwardly old one. Ageing societies save for retirement. An old society sells assets to spend. The EU's median age is 45 and more restrictions on immigration will speed the greying process. For the moment, Europeans are keen savers: at 14%, the EU's household savings rate is comparable to that of Japan, which is even older, in the 1990s. By 2015, though, Japan's rate had fallen to zero. Tight labour markets, as people retire, are also likely to lift wages in services and the care industry, and such workers are more likely to spend than save. The last reason for the shift comes from business investment, which has crept up since the euro crisis of the mid-2010s. New industries are likely to emerge soon, prompting more. Defence and aerospace firms will grow to equip Europe's armed forces. And the EU wants to become a net-zero emitter of greenhouse gases by 2050, which will mean yet more spending on everything from grids to charging stations. Estimates suggest that €500bn ($545bn) in extra annual investment by 2030 will be required, equivalent to 3% of GDP. Yet Europe's new free-spending impulses will have to overcome constraints. Fiscal expansion will be restricted by high debt levels and deficits in some big countries, notably Italy and France. For its part, despite having space to do so, Spain is reluctant to lavish money on soldiers and kit. Common EU debt to fund such spending, although under discussion, is unlikely to end up happening on a large scale. Economic growth would make life easier. But ageing will shave between 0.4 percentage points (in France) and 1.1 percentage points (in Italy) off annual growth rates until the end of the 2030s, according to Thomas Cooley of New York University. Although German spending will boost the country's GDP, at least in the short run, it may cause problems elsewhere. When the largest member of a currency union spends big, interest rates must rise to prevent inflation. Higher rates will boost the euro, making exports less competitive. On top of this, the current Trumpian uncertainty makes businesses nervous about gambling on long-term investments. Policymakers hope that, by boosting local demand, they will also make Europe less vulnerable to trade wars. In order to help the process along, they might consider a dose of deregulation. Linking the continent's capital markets, for instance, would both allow savers to earn higher returns on investments and provide funding for new endeavours. Germany has already done the unthinkable. It would be a shame to waste the opportunity. For more expert analysis of the biggest stories in economics, finance and markets, sign up to Money Talks, our weekly subscriber-only newsletter.
