European markets rise as investors mull Trump's infrastructure plan
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European markets are set for a positive open on Wednesday, buoyed by optimism surrounding U.S. President Donald Trump's announcement of a $500 billion private-sector investment in artificial intelligence infrastructure. Tech shares led the advance, while concerns linger over potential tariffs targeting the European Union.
Trump’s AI push boosts sentiment
The EuroSTOXX 50 futures rose 0.2%, with DAX futures outperforming at 0.6%, reflecting enthusiasm for the tech-focused initiative. Oracle shares surged over 9% in Frankfurt following its partnership in Trump’s ambitious AI venture, while SoftBank saw a 15% spike in Japan, underscoring the global tech sector’s rally.
Despite the upbeat sentiment in continental Europe, FTSE futures underperformed, dipping 0.04%, as traders weighed the implications of Trump’s tariff threats against the European Union. While no immediate measures were announced, the prospect of tariffs kept investor caution elevated.
Earnings reports shape the landscape
European corporate results offered a mixed picture. Netflix’s Frankfurt-listed shares soared over 14% after the streaming giant reported record new subscriber growth and plans to increase subscription prices, signaling robust demand.
In contrast, Barry Callebaut, the Swiss chocolate maker, reported disappointing first-quarter sales volumes, attributed to soaring cocoa prices, which hit record highs in the final quarter of 2024.
J D Wetherspoon reported a 5% rise in like-for-like sales, buoying the British pub group’s outlook, while EasyJet narrowed its first-quarter operating loss due to easing fuel costs and strong demand for holiday travel packages. However, TotalEnergies delayed its $20 billion LNG project in Mozambique, citing persistent security concerns, casting a shadow over its expansion plans.
Tariff threats and market implications
Trump’s renewed rhetoric about imposing tariffs on the European Union adds a layer of uncertainty for the region. While immediate action has yet to materialize, the threat underscores the fragile trade relations that could influence market volatility in the coming months.
Market outlook
As European markets digest the potential opportunities from AI-driven investments and the risks from trade tensions, attention will shift to corporate earnings and geopolitical developments. While tech names lead the rally, broader market performance may hinge on how investors interpret Trump's comments and their implications for EU-U.S. relations.
Trump’s AI push boosts sentiment
The EuroSTOXX 50 futures rose 0.2%, with DAX futures outperforming at 0.6%, reflecting enthusiasm for the tech-focused initiative. Oracle shares surged over 9% in Frankfurt following its partnership in Trump’s ambitious AI venture, while SoftBank saw a 15% spike in Japan, underscoring the global tech sector’s rally.
Despite the upbeat sentiment in continental Europe, FTSE futures underperformed, dipping 0.04%, as traders weighed the implications of Trump’s tariff threats against the European Union. While no immediate measures were announced, the prospect of tariffs kept investor caution elevated.
Earnings reports shape the landscape
European corporate results offered a mixed picture. Netflix’s Frankfurt-listed shares soared over 14% after the streaming giant reported record new subscriber growth and plans to increase subscription prices, signaling robust demand.
In contrast, Barry Callebaut, the Swiss chocolate maker, reported disappointing first-quarter sales volumes, attributed to soaring cocoa prices, which hit record highs in the final quarter of 2024.
J D Wetherspoon reported a 5% rise in like-for-like sales, buoying the British pub group’s outlook, while EasyJet narrowed its first-quarter operating loss due to easing fuel costs and strong demand for holiday travel packages. However, TotalEnergies delayed its $20 billion LNG project in Mozambique, citing persistent security concerns, casting a shadow over its expansion plans.
Tariff threats and market implications
Trump’s renewed rhetoric about imposing tariffs on the European Union adds a layer of uncertainty for the region. While immediate action has yet to materialize, the threat underscores the fragile trade relations that could influence market volatility in the coming months.
Market outlook
As European markets digest the potential opportunities from AI-driven investments and the risks from trade tensions, attention will shift to corporate earnings and geopolitical developments. While tech names lead the rally, broader market performance may hinge on how investors interpret Trump's comments and their implications for EU-U.S. relations.