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Business Recorder
25-04-2025
- Automotive
- Business Recorder
STOXX 600 up as automakers, materials gain
FRANKFURT: European shares ended higher on Thursday, boosted by automakers and materials stocks, as investors digested a mixed set of corporate earnings and evaluated the ever-shifting US trade rhetoric. The pan-European STOXX 600 index erased earlier losses to close 0.4% higher, building on this week's rally. An index of automobiles and parts led the gains with a 1.9% jump, with French carmaker Renault advancing 4.4% after reporting a small rise in first-quarter revenue. The basic resources index added 1%, making its fourth straight session of gains on the back of elevated copper prices despite US tariff-related uncertainties. The White House suggested on Wednesday its openness to lowering sweeping tariffs on China. Treasury Secretary Scott Bessent said high tariffs between the US and China were not sustainable, but also pointed out that a reduction would not come unilaterally. 'Right now, markets are focused on whether a deal is forthcoming or not... the market just wants some certainty, be it certainty with a deal or certainty without a deal,' said Geoff Yu, senior EMEA market strategist at BNY. Also aiding the broader mood was US President Donald Trump backtracking from his series of criticisms of Federal Reserve Chair Jerome Powell, which included calls for Powell's resignation. The European benchmark has recovered over half of its losses from its near 18% drop from record highs earlier this month after Trump's import tariffs triggered fears of a global recession. On the day, banks limited overall gains, falling 1%. France's BNP Paribas fell 2.1% after the lender reported mixed quarterly results. The telecommunications index also lost 0.8%, with Finnish telecom firm Nokia sliding 9.4% after the company missed first-quarter profit expectations. Shares in Adidas rose 2.9% after the German sportswear and apparel maker reported first-quarter sales and profit above expectations. Belimo jumped 12.4% - the top individual gainer for the day - after the heating and ventilation solutions maker upgraded its 2025 guidance for revenue growth and EBIT margin.
Business Times
24-04-2025
- Automotive
- Business Times
Europe: Stoxx 600 up as automakers, materials gain; Trump policy shifts in focus
[BENGALURU] European shares ended higher on Thursday (Apr 24), boosted by automakers and materials stocks, as investors digested a mixed set of corporate earnings and evaluated the ever-shifting US trade rhetoric. The pan-European Stoxx 600 index erased earlier losses to close 0.4 per cent higher, building on this week's rally. An index of automobiles and parts led the gains with a 1.9 per cent jump, with French carmaker Renault advancing 4.4 per cent after reporting a small rise in first-quarter revenue. The basic resources index added 1 per cent, making its fourth straight session of gains on the back of elevated copper prices despite US tariff-related uncertainties. The White House suggested on Wednesday its openness to lowering sweeping tariffs on China. Treasury Secretary Scott Bessent said high tariffs between the US and China were not sustainable, but also pointed out that a reduction would not come unilaterally. 'Right now, markets are focused on whether a deal is forthcoming or not... the market just wants some certainty, be it certainty with a deal or certainty without a deal,' said Geoff Yu, senior Emea market strategist at BNY. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Also aiding the broader mood was US President Donald Trump backtracking from his series of criticisms of Federal Reserve chair Jerome Powell, which included calls for Powell's resignation. The European benchmark has recovered over half of its losses from its near 18 per cent drop from record highs earlier this month after Trump's import tariffs triggered fears of a global recession. On the day, banks limited overall gains, falling 1 per cent. France's BNP Paribas fell 2.1 per cent after the lender reported mixed quarterly results. The telecommunications index also lost 0.8 per cent, with Finnish telecom firm Nokia sliding 9.4 per cent after the company missed first-quarter profit expectations. Shares in Adidas rose 2.9 per cent after the German sportswear and apparel maker reported first-quarter sales and profit above expectations. Belimo jumped 12.4 per cent – the top individual gainer for the day – after the heating and ventilation solutions maker upgraded its 2025 guidance for revenue growth and Ebit margin. Kering dipped 1 per cent, paring early losses, after the luxury group reported a bigger-than-expected decline in first-quarter revenue. The German government cut its economic growth forecast and said it sees stagnation in 2025 instead of a 0.3 per cent expansion. The German Ifo index data showed a surprise improvement in business morale in Europe's biggest economy for April, a day after dour PMI readings for the euro zone and Britain. REUTERS
Zawya
05-02-2025
- Business
- Zawya
Sterling hits one-month high as dollar slides; focus turns to BoE
LONDON - The pound rose to its highest in a month on Wednesday as the dollar retreated further after surging two days ago on the threat of sweeping U.S. tariffs, while the focus in UK markets turned to the Bank of England rate decision on Thursday. Sterling climbed to $1.2532 in morning trade in London, its highest since Jan. 7, and was last up 0.36% at $1.2526. The U.S. dollar index, which tracks the currency against six peers, fell 0.5% on Wednesday. It has receded since hitting a three-week high on Monday, when it jumped as much as 1.3% as the U.S. looked set to impose tariffs on Mexico and Canada. The dollar has since fallen around 2.1% after both Mexico and Canada won a one-month reprieve on tariffs, although the U.S. and China increased levies on each other's exports. A 1% rally in the Japanese yen also knocked the dollar on Wednesday. Many economists think - and British officials are hopeful - that Britain will be spared the worst of U.S. President Donald Trump's aggressive tariff policies due to a more balanced trade situation between the two countries. That has helped the pound rise for three weeks against the euro as traders bet that the euro zone is at greater threat from U.S. levies. The euro was last steady against sterling on Wednesday at 83.11 pence. BOE LOOMS Traders and investors expect the Bank of England to cut interest rates by 25 basis points (bps) to 4.5% on Thursday, reflecting a slowdown in British growth and a drop in previously stubborn services inflation. The Bank will also release new growth and inflation forecasts. The pound is down around 0.8% and 0.6% against the dollar and euro respectively so far this year as markets have priced in more BoE cuts due to slowing growth. "We expect the BoE to cut rates by 25 bp and easing guidance will be strengthened relative to market expectations," said Geoff Yu, senior market strategist at BNY. "Similar to the ECB (European Central Bank), at least one 25 bp cut per quarter should be in play as growth risks remain heavily to the downside, especially measured through household demand," he added. Money market pricing showed traders expected around 84 bps of BoE easing this year. The Bank started lowering its main rate from 5.25% in August. (Reporting by Harry Robertson Editing by Gareth Jones)
Reuters
05-02-2025
- Business
- Reuters
Britain's FTSE 100 dips marginally ahead of BoE rate decision
Feb 5 (Reuters) - British stocks were set to fall for the third straight session on Wednesday, as a stronger pound put pressure on the export-heavy index, while caution prevailed ahead of the Bank of England's rate decision. The FTSE 100 (.FTSE), opens new tab edged marginally lower at 8,565.73 by 10:05 GMT, while the domestically focussed mid-cap FTSE 250 (.FTMC), opens new tab lost 0.3%. Both indexes were set to fall for a third straight session. A domestically stronger currency , which rose 0.3% to approach a near one-month high, weighed on the export-heavy FTSE 100 index. Keeping losses in check was the healthcare sector (.FTNMX201030), opens new tab that rose 1.1%, boosted by a 5.5% gain in GSK (GSK.L), opens new tab after the drugmaker posted a better-than-expected fourth-quarter result. Meanwhile, precious metal miners (.FTNMX551030), opens new tab was the top sectoral gainer, rising 2.5%, as gold prices jumped 1% to a record high. Ferrexpo (FXPO.L), opens new tab extended losses from the prior session, down 8.6%, as the miner on Tuesday said a civil claim worth 157 billion hryvnias ($3.77 billion) was filed against its Ukrainian unit. Grainger (GRI.L), opens new tab on the other hand, gained 3.8% after the provider of private rental homes posted a 15% growth in total net rental income for the four-month period to January end. On the macro front, the Bank of England's monetary policy committee is set to convene on Thursday to take a call on interest rates, with markets having fully priced in a 25-basis-point cut. "We expect the BoE to cut rates by 25bp and easing guidance will be strengthened relative to market expectations. At least one 25bp cut per quarter should be in play as growth risks remain heavily to the downside," said Geoff Yu, senior market strategist at BNY.
