Major European Markets Close On Weak Note After Cautious Session

(RTTNews) - The major European markets closed weak on Wednesday as investors reacted to earnings announcements, and awaited the monetary policy announcement from the Federal Reserve later in the day. The Bank of England's policy announcement is due on Thursday.

Upbeat economic data from Germany, and optimism surrounding upcoming U.S.-China trade talks helped limit markets' downside.

The pan European Stoxx 600 closed down 0.32%. The U.K.'s FTSE 100 and France's CAC 40 ended lower by 0.31% and 0.51%, respectively. Germany's DAX edged down by 0.04%, while Switzerland's SMI ended down 0.96%.

Among other markets in Europe, Austria, Czech Republic, Finland, Greece, Iceland, Ireland, Norway, Poland, Portugal, Russia and Sweden ended higher.

Belgium, Spain and Turkiye closed weak, while Denmark and Netherlands ended flat.

In the UK market, Entain, JD Sports Fashion, Intercontinental Hotels, Glencore, Prudential, Admiral Group, Rio Tinto, M&G, Howden Joinery and Imperial Brands closed on a firm note, gaining 1 to 2.3%.

GSK closed down nearly 5%. Rentokil Initial, Vistry Group, Associated British Foods, BAE Systems, Segro and Rolls-Royce Holdings closed lower by 1.9 to 3.3%.

In the German market, Fresenius Medical Care climbed nearly 4%.

Infineon gained about 3% and Porsche ended nearly 2.7% up. Vonovia gained more than 2.5%. The company reported that its profit, including valuation, for the first quarter of 2025 climbed to 515.4 million euros from 335.5 million euros in the previous year.

BMW moved up 1.7% after the company confirmed its fiscal 2025 outlook, citing the sustained demand for its premium vehicles. In the first quarter, Group net profit totalled 2.17 billion euros, down 26.4% from last year's 2.95 billion euros.

Fresenius and Adidas also closed notably higher. Fresenius reported higher adjusted profit in its first quarter, and confirmed its fiscal 2025 outlook.

Sartorius, Zalando, Siemens Energy, Bayer, Heidelberg Materials, Merck and Continental lost 2 to 3.4%.

Siemens Healthineers drifted down despite the company reporting that its net income for the second quarter of fiscal year 2025 ended March 31, 2025 increased to 530 million euros or 0.47 euros per share from 426 million euros or 0.38 euros per share in the prior year.

Symrise, Allianz, Qiagen and RWE also ended notably lower.

In the French market, Sanofi closed down 4.3%. Essilor, Kering, L'Oreal, Teleperformance, Saint-Gobain, Renault, Airbus and LVMH ended lower by 1 to 3%.

Veolia Environnement closed nearly 3%. The company reported first quarter EBITDA of 1.69 billion euros, a 5.5% organic growth from a year ago. Current EBIT was up 8.4%, to 915 million euros.

Legrand gained about 3%. The specialist in electrical and digital building infrastructures reported higher first-quarter profit, driven by strong revenue growth. Further, the company confirmed its fiscal 2025 guidance.

On the economic front, Germany's factory orders grew more than expected in March on robust foreign and domestic demand, data from Destatis showed.

Factory orders advanced 3.6% month-on-month in March after remaining flat in February. Orders are forecast to grow 1.4%. On a yearly basis, factory orders logged an expansion of 3.8%, in contrast to the 0.2% fall in February.

Germany's construction sector downturn eased in April as total industry activity and new orders declined at slower rates, purchasing managers' survey data published by S&P Global showed. The HCOB construction Purchasing Managers' Index advanced to 45.1 in April from 40.3 in the previous month. This was the highest reading in more than two years.

Eurozone retail sales declined in March on falling food and non-food products turnover, Eurostat reported Wednesday.

Retail sales dropped 0.1% month-on-month in March, in contrast to the 0.2% rise in February. The pace of decline matched economists' expectations.

On a yearly basis, retail sales growth softened to 1.5% in March from 1.9% in February. This was slightly weaker than the forecast of 1.6%.

Retail sales in the EU decreased 0.1% month-on-month but increased 1.4% from the previous year.

The S&P Global UK Construction PMI rose to 46.6 in April 2025 from 46.4 in March, the fourth straight month of contraction.

Data from S&P Global showed the HCOB Construction PMI in France came in at 43.6 in April 2025, little changed from 43.8 in the prior month, indicating another sharp monthly contraction and extending the sector's downturn to nearly three years.

Meanwhile, France's trade deficit narrowed to €6.2 billion in March 2025 from €7.7 billion in February and compared to market expectations of €6.9 billion. This marks the smallest trade gap in three periods, as exports rose by 5.6% month-on-month to €52.6 billion. Imports grew by a softer 2.3% to €58.8 billion.