European Stocks Close On Mixed Note

(RTTNews) - European stocks turned in a mixed performance on Thursday as investors reacted to quarterly earnings updates and the European Central Bank's rate cut decision, while continuing to follow the developments on the tariff front.

The U.S. President Donald Trump's decision to delay implementation of tariffs on cars from Canada and Mexico, raised optimism his administration might consider some relaxation or exemption to certain goods from a few countries.

The Governing Council of ECB, led by President Christine Lagarde cut the deposit rate by 25 basis points to 2.5%, which is the lowest level since February 2023 when it was at the same level. The main refinancing rate was lowered by a quarter basis points to 2.65% and the lending rate to 2.9%, respectively.

The ECB has lowered interest rates by a quarter basis points each in every rate-setting session since September.

Responding to reporters' questions, Lagarde said the latest rate cut decision was a consensus with no policymaker opposing, but the Austrian central bank governor Robert Holzmann abstaining.

The bank will not pre-commit to a particular rate path, the ECB reiterated.

The ECB staff lowered the euro area growth forecast for this year to 0.9% from 1.1%. The outlook for next year was downgraded to 1.2% from 1.4% and the prediction for 2027 was retained at 1.3%.

The pan European Stoxx 600 edged down 0.03%. The U.K.'s FTSE 100 closed down 0.83%, Germany's DAX climbed 1.47% and France's CAC 40 ended 0.29% up. Switzerland's SMI lost 0.64%.

Among other markets in Europe, Austria, Finland, Ireland, Norway, Poland, Spain, Sweden and Turkiye closed higher.

Denmark, Greece, Iceland, Portugal and Russia ended weak, while Belgium and Netherlands settled flat.

In the UK market, Schrodders climbed nearly 13%. Admiral Group gained 5% after reporting a 90% jump in annual pre-tax profit.

Endeavour Mining advanced nearly 5% after reporting earnings before taxes of $99 million for the fourth quarter compared with loss of $82 million in the same quarter a year ago.

ITV Plc moved up sharply after reporting statutory profit before tax of 521 million pounds for twelve months ended 31 December 2024, compared to 193 million pounds, last year.

WPP, Mondi, Antofagasta, Associated British Foods, Anglo American Plc, Howeden Joinery, Glencore and Spirax Group gained 2 to 3.4%.

Reckitt Benckiser ended more than 2% up. The company reported lower profit in fiscal 2024, with slight decline in revenues. Looking ahead, for the first quarter, the company expects mid-to-high single digit growth in Emerging Markets.

Melrose Industries tanked 18.18% despite the company's earnings for 2024 coming in line with expectations. The company has forecast strong future cash generation.

Rentokil Initial tumbled 10.77% after reporting a decline in pre-tax income for the full year. For the 12-month period to December 31, 2024, the company posted a profit before tax of 405 million pounds, lesser than 493 million pounds in the previous year.

Informa, HSBC Holdings, LondonMetric Property and Compass Group closed lower by 3.8 to 6%.

Pearson, Marks & Spencer, Intercontinental Hotels Group, The Sage Group, Halma, Unite Group, Rio Tinto and Relx lost 2 to 3.4%.

In the German market, Deutsche Post rallied about 13% after the company announced a €1 billion cost-cutting plan.

Continental surged 6.75% and Daimler Truck Holding gained 6.2%. Puma, Siemens Energy, BMW, Mercedes-Benz, Volkswagen, Brenntag, Infineon, Deutsche Bank, Sartorius, Qiagen and E.ON closed higher by 3 to 5.3%.

Merck moved up sharply on results. On an adjusted basis, earnings per share were 8.63 euros in fiscal 2024, compared to 8.49 euros last year. Further, the Executive Board and Supervisory Board intend to propose a stable dividend of 2.20 euros per share to the Annual General Meeting on April 25.

Vonovia closed 4.7%. Zalando ended lower by about 4%, and Deutsche Telekom drifted down 2.5%. Beiersdorf, SAP and MTU Aero Engines also ended notably lower.

In the French market, Teleperformance jumped about 7%. ArcelorMittal gained 6.6%. Bouygues gained about 5%. The company reported fiscal 2024 net profit from continuing operations of 1.2 billion euros, up 21% from last year.

Saint Gobain, Bouygues, Edenred, STMicroElectronics, Capgemini and Societe Generale climbed 4 to 5.6%.

BNP Paribas, Dassault Systemes, Carrefour and Michelin gained 3 to 3.75%. Stellantis, Eurofins Scientific, Credit Agricole, Veolis, Vinci and TotalEnergies also closed notably higher.

Air France-KLM Group shares skyrocketed 36% after the company reported narrower net loss in its fourth quarter with higher revenues.

Unibail Rodamco closed more than 4% down. Essilor declined about 3% and Hermes International ended 2.8% down. Schneider Electric, LVMH and Accor also ended notably lower.

On the economic front, Eurozone retail sales declined unexpectedly in January on non-food and auto fuel sales, official data showed. Retail sales registered a monthly drop of 0.3%, confounding expectations for an increase of 0.1%. The statistical office revised up retail sales for December to nil growth from the initial estimate of 0.2% fall.

Germany's construction sector continued to contract and the pace of decline worsened in February, survey results from S&P Global showed.

The HCOB construction Purchasing Managers' Index registered 41.2 in February, down from January's 20-month high of 42.5. The reading remained well below 50.0 indicating contraction.

The HCOB Construction PMI in France fell to 39.8 in February 2025, down from January's 44.5, signaling a deeper contraction in construction activity and the sharpest decline since last September.

The UK construction sector registered the sharpest contraction since May 2020 on notable falls in orders and output, survey results from S&P Global showed.

The construction Purchasing Managers' Index fell unexpectedly to 44.6 in February from 48.1 in January. The reading was seen at 49.5.