European markets seek direction as Q2 begins with modest optimism
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European equity markets opened the second quarter on a cautiously positive note, following a late-session rebound on Wall Street and modest gains across Asia. Futures on major indices including the Euro Stoxx 50, DAX, and FTSE rose between 0.4% and 0.5%, hinting at a tentative recovery. Despite a challenging macro backdrop, the broader European Stoxx 600 index (SXXP) closed Q1 with a gain of more than 5%, outperforming major global peers.
In contrast, U.S. equity markets wrapped up the first quarter under pressure, with the S&P 500 down 4.6%—its worst quarterly performance since mid-2022. Uncertainty surrounding U.S. President Donald Trump’s forthcoming tariff announcements continues to weigh on sentiment. As the market awaits clarity on the scope and scale of the expected protectionist measures, traders are turning their attention to U.S. labor data. The JOLTS job openings report, scheduled for release later today, will offer key insights into employment dynamics ahead of Friday’s non-farm payrolls.
In early Frankfurt trading, shares of the so-called Magnificent Seven tech giants were generally flat to lower, with the notable exception of Tesla, which advanced by around 2%. The broader tech complex continues to reflect cautious investor sentiment, shaped by macro risks and valuation concerns.
On the corporate front, headlines were relatively sparse. Denmark’s Bavarian Nordic drew attention after securing FDA approval for its freeze-dried mpox and smallpox vaccine formulation. The news drove the stock up between 5% and 7% in early trading. Meanwhile, German fashion house Hugo Boss may benefit from positive read-across following a strong forecast from U.S.-based PVH, parent company of Calvin Klein, which surged 16% in after-hours trading.
In the UK, construction supplier Travis Perkins issued cautious guidance, noting lingering uncertainty in the sector’s recovery trajectory. The firm reported a 23% decline in full-year 2024 profits, highlighting the challenges still facing the broader building materials industry.
As Q2 unfolds, investor focus will remain firmly on global trade developments, inflation dynamics, and upcoming macroeconomic releases. While the European equity complex has shown resilience, sustained performance will depend on greater clarity regarding U.S. policy direction and the stability of global demand.
In contrast, U.S. equity markets wrapped up the first quarter under pressure, with the S&P 500 down 4.6%—its worst quarterly performance since mid-2022. Uncertainty surrounding U.S. President Donald Trump’s forthcoming tariff announcements continues to weigh on sentiment. As the market awaits clarity on the scope and scale of the expected protectionist measures, traders are turning their attention to U.S. labor data. The JOLTS job openings report, scheduled for release later today, will offer key insights into employment dynamics ahead of Friday’s non-farm payrolls.
In early Frankfurt trading, shares of the so-called Magnificent Seven tech giants were generally flat to lower, with the notable exception of Tesla, which advanced by around 2%. The broader tech complex continues to reflect cautious investor sentiment, shaped by macro risks and valuation concerns.
On the corporate front, headlines were relatively sparse. Denmark’s Bavarian Nordic drew attention after securing FDA approval for its freeze-dried mpox and smallpox vaccine formulation. The news drove the stock up between 5% and 7% in early trading. Meanwhile, German fashion house Hugo Boss may benefit from positive read-across following a strong forecast from U.S.-based PVH, parent company of Calvin Klein, which surged 16% in after-hours trading.
In the UK, construction supplier Travis Perkins issued cautious guidance, noting lingering uncertainty in the sector’s recovery trajectory. The firm reported a 23% decline in full-year 2024 profits, highlighting the challenges still facing the broader building materials industry.
As Q2 unfolds, investor focus will remain firmly on global trade developments, inflation dynamics, and upcoming macroeconomic releases. While the European equity complex has shown resilience, sustained performance will depend on greater clarity regarding U.S. policy direction and the stability of global demand.