European Stocks Close On Strong Note On Trade Deal Optimism

(RTTNews) - European stocks closed on a strong note on Wednesday as prospects of a trade deal between the U.S. and EU increased after U.S. President Donald Trump announced trade deals with Japan and the Philippines.

The "largest ever" U.S. trade deal with Japan features a 15% tariff on Japanese exports and includes a commitment from Tokyo to invest $550 billion in the United States and open its markets for American vehicles, rice, and other agricultural goods.

The prospects of an EU-U.S. trade agreement improved after Trump said that EU representatives would come for trade negotiations on Wednesday.

"We have Europe coming in tomorrow, and the next day, we have some other ones coming in," Trump said late on Tuesday, without specifying details.

The pan European Stoxx 600 climbed 1.18%. The U.K.'s FTSE 100 ended 0.52% up, Germany's DAX gained 0.86% and France's CAC 40 closed higher by 1.42%. Switzerland's SMI settled higher by 1.54%.

Among other markets in Europe, Belgium, Czech Republic, Denmark, Finland, Greece, Ireland, Netherlands, Poland, Russia and Sweden closed with sharp to moderate gains. Norway and Spain edged up marginally.

Portugal and Turkiye ended weak, while Iceland closed flat.

In the UK market, Informa gained about 5% after raising its full-year revenue guidance. The company has also announced £150 million in additional share buybacks.

JD Sports Fashion closed 4.65% up, and AstraZeneca climbed 3.1%. Ashtead Group, Croda International, Associated British Foods, Smith & Nephew, GSK, IAG, Mondi, Bunzl, 3i Group, Spirax Group, Shell, Glencore, IMI, Antofagasta, Schroders and Rentokil Initial gained 1 to 2.6%.

Centrica ended more than 3% down. SSE closed nearly 3% down. United Utilities, Severn Trent, National Grid, Segro, Airtel Africa, Coca-Cola HBC, Unite Group, RightMove and Imperial Brands lost 1 to 2.5%.

In the German market, Daimler Truck Holding, Porsche, Volkswagen, Mercedes-Benz and BMW gained 4 to 7.5%.

Siemens Energy, Puma, BASF, Deutsche Post, Siemens, Merck, Bayer, Beiersdorf, Continental, Commerzbank, Brenntag and Deutsche Bank climbed 2 to 6.5%. Siemens Healthineers, Symrise, Heidelberg Materials, Rheinmetall and Allianz also posted strong gains.

SAP ended more than 4% down. The company maintained its full-year targets despite reporting higher quarterly sales and earnings.

Infineon Technologies closed lower by more than 3%. E.ON, RWE, Vonovia, Adidas and Zalando also ended sharply lower.

In Paris, Stellantis soared about 9%. Kering climbed nearly 5%. Teleperformance, Saint Gobain, LVMH, Renault, Sanofi and Hermes International gained 2.3 to 4%.

L'Oreal, Vinci, EssilorLuxottica, Schneider Electric, BNP Paribas, Accor, Societe Generale, AXA, Michelin, Carrefour and Airbus gained 1 to 2%.

Edenred climbed nearly 1.5%. The company announced that its net profit remained flat in the first half compared to the previous year due to higher financial and tax expenses. For the first half, net profit remained at 235 million euros compared with last year.

Adjusted net profit increased to 279 million euros from 268 million euros in the previous year. Adjusted earnings per share were 1.16 euro versus 1.08 euro last year.

French train maker Alstom gained about 6% as first-quarter sales topped estimates.

STMicroElectronics ended more than 4% down. Thales closed lower by about 2.3%. The company reported adjusted net income of 877 million euros for the first-half, compared to 866 million euros a year ago. In the first half, net income from continuing operations grew 6% to 664 million euros from prior year's 625 million euros.

Looking ahead, for fiscal 2025, the company expects adjusted EBIT margin to be in the range of 12.2% to 12.4%, mainly driven by the margin progression in the Aerospace segment and continued high margin in Defence.

Engie and Veolia Environment also closed notably lower.