European indices are gaining on the last day of the week, closing out an overall successful period supported by solid corporate earnings despite persistent trade tensions.
The only losing indices are the DAX (-0.36%) and W20 (-0.60%). Meanwhile, Austria’s AUT20, Spain’s SPA35, and Italy’s ITA40 are each up +0.60%, while the UK100 and France’s FRA40 are both higher by around 0.10%. About 80% of Europe’s earnings season is now behind us, with profit growth surprising to the upside by roughly 14% versus forecasts, offsetting weaker sales data.
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Among the best-performing sectors are industrials, healthcare, and consumer goods. Source: Bloomberg Finance L.P.
Over the past week, investors also focused on political and trade developments. U.S. tariffs on regional economies have come into effect. Some countries managed to negotiate partial reductions, but Switzerland left Washington without a deal and now faces a 39% tariff on exports. Swiss equities are rebounding slightly after a previous drop triggered by disappointment over the tariff outcome, with insurers and real estate firms in the regional spotlight.
Sentiment was also boosted by the announcement of a meeting between U.S. President Donald Trump and Russian President Vladimir Putin. European markets are placing hopes on the summit for a ceasefire in Ukraine. Meanwhile, the Bank of England cut interest rates yesterday by 25 bps in a majority vote. However, further cuts are not guaranteed, which strengthened the pound.
DAX (D1 interval)
The German index is down 0.36% today to 24,196 points. However, it remains close to all-time highs and continues consolidating above key support at 23,200 points.
Top stock moves:
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Munich Re (MUV2.DE) is down over 7% after cutting its 2025 insurance revenue forecast to €62B from €64B due to business trends and FX headwinds, despite posting a record quarterly profit of €2.1B and maintaining its full-year net profit target of €6B.
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Rheinmetall (RHM.DE) is up 3% even though Q2 sales (€2.43B) and EBIT (€236M) missed expectations; the company cited delays in contract awards due to political changes in Germany. However, guidance was maintained, supporting the share price.
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Allianz (ALV.DE) is down 1.50% despite raising Q2 forecasts, with net profit up 13% on strong results in the property and casualty segment; the company reaffirmed full-year targets.
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Zurich Insurance (ZURN.CH) is down 0.76% after its CEO expressed skepticism over U.S. tariff strategy. Nevertheless, the company posted a 6% rise in operating profit in H1, driven by increased demand for weather-related risk policies.
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