Published by Global Banking and Finance Review
Posted on April 24, 2025
By Sukriti Gupta, Medha Singh and Nikhil Sharma
(Reuters) - 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 U.S. 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 U.S. 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 U.S. 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 U.S. 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.
Kering dipped 1%, 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% 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.
(Reporting by Sukriti Gupta, Medha Singh, Nikhil Sharma and Shashwat Chauhan in Bengaluru; Editing by Varun H K, Sonia Cheema, William Maclean)
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