EU markets open higher as tariff tensions ease ahead of ECB meeting
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European equities are set for a positive open, buoyed by U.S. President Donald Trump’s announcement of a one-month exemption for automakers from his proposed 25% tariffs, provided they adhere to existing free trade agreements. Investors also turn their focus to the European Central Bank’s (ECB) upcoming rate decision, which is widely expected to deliver another cut as part of ongoing monetary easing measures.
Market Reaction & Key Indices EuroSTOXX 50 futures advanced 1%, while FTSE futures gained 0.6% and DAX futures rose 0.9%, reflecting improved sentiment. This marks a continuation of the rebound from Tuesday’s selloff when the STOXX 600 fell over 2%, weighed down by a sharp rise in bond yields.
Corporate Earnings & Sector Performance Investor attention is also directed toward corporate earnings releases. Zalando (ZAL) projected higher-than-expected profits for 2025, supporting a 4.6% rise in its stock. Air France-KLM (AF) reported better-than-expected full-year results, while Lufthansa (LHA) posted a decline in operating profit, in line with forecasts. Solvay (SOLB) expects stable core earnings, contributing to a measured outlook for the chemicals sector.
In the logistics sector, DHL (DHL) announced a major restructuring plan involving 8,000 job cuts aimed at saving €1 billion ($1.08 billion) by 2027, following a 7.2% drop in annual operating profit.
Outlook & Key Drivers With easing trade tensions and expectations for a dovish ECB stance, European markets are positioned for further upside. Investors will closely watch Thursday’s ECB rate decision, economic data releases, and continued earnings reports for further signals on market direction.
Market Reaction & Key Indices EuroSTOXX 50 futures advanced 1%, while FTSE futures gained 0.6% and DAX futures rose 0.9%, reflecting improved sentiment. This marks a continuation of the rebound from Tuesday’s selloff when the STOXX 600 fell over 2%, weighed down by a sharp rise in bond yields.
Corporate Earnings & Sector Performance Investor attention is also directed toward corporate earnings releases. Zalando (ZAL) projected higher-than-expected profits for 2025, supporting a 4.6% rise in its stock. Air France-KLM (AF) reported better-than-expected full-year results, while Lufthansa (LHA) posted a decline in operating profit, in line with forecasts. Solvay (SOLB) expects stable core earnings, contributing to a measured outlook for the chemicals sector.
In the logistics sector, DHL (DHL) announced a major restructuring plan involving 8,000 job cuts aimed at saving €1 billion ($1.08 billion) by 2027, following a 7.2% drop in annual operating profit.
Outlook & Key Drivers With easing trade tensions and expectations for a dovish ECB stance, European markets are positioned for further upside. Investors will closely watch Thursday’s ECB rate decision, economic data releases, and continued earnings reports for further signals on market direction.