Europe close: Markets rise for seventh session after strong GDP, earnings

30th Apr 2025 15:25

(Sharecast News) - Europe's Stoxx 600 index made gains for the seventh straight day on Wednesday amid a barrage of corporate earnings, after data pointed to stronger-than-expected GDP growth across the region.

The Stoxx 600 finished 0.5% higher at 527.48, its highest close since 2 April, as solid performances in London, Frankfurt and Paris made up for losses in Milan and Madrid.

Economic activity across the eurozone increased by more than expected in the first quarter of 2025, according to figures from Eurostat, though a potential slowdown is looming as the impact of US trade tariffs are felt over the coming months.

Euro area GDP expanded by 0.4% over the first three months of the year, picking up from the 0.2% growth rate seen in the fourth quarter. This was comfortably ahead of the consensus forecast for another 0.2% expansion, as both Germany and France managed to avoid a recession by returning to growth of 0.2% and 0.1% over the quarter, respectively.

However, European markets temporarily dipped into the red in afternoon trade (though recovered shortly after) after the news of a 0.3% year-on-year contraction in US GDP in the first quarter, which prompted a negative start on Wall Street. This was well below forecasts for 0.3% growth and the first annualised contraction since the first quarter of 2022.

"Markets had been rubbing along relatively happily until today's US data, which seemed to give form to investors' worst nightmares. Negative GDP, a first in three years, weaker jobs growth and higher wages are the potent combination of stagflation," said Chris Beauchamp, chief market analyst at IG.

Market movers

Irish nutrition supplement maker Glanbia was the best performer on the Stoxx 600, surging 13% after first-quarter figures came in ahead of expectations.

Shares in Smith & Nephew jumped in London after the medical devices specialist posted improved first-quarter sales and reaffirmed its full-year outlook. Also firmly higher was GSK after shrugging off the potential impact of tariffs and maintaining its full-year outlook, following a strong start to the year.

Meanwhile, Evolution Gaming slumped in Stockholm as the online gambling games developer missed quarterly earnings estimates.

Danish transport and logistics company DSV surged after completing the acquisition of Schenker from Deutsche Bhan.

France's TotalEnergies fell after posting a sharp fall in first-quarter profit, following a period of lower crude prices and weak refining margins.

Banking groups Credit Agricole and Barclays both fell after releasing their first-quarter results: the French lender reported a drop in profits, while its UK peer beat forecasts but lifted bad loan provisions in response to macroeconomic uncertainty in the US.

Mercedes was lower after the automaker pulled its 2025 earnings outlook, citing volatility from US tariffs.