European Markets Set to Open Higher as Wall Street Notches Three-Day Win Streak
European stock markets closed higher on Thursday, with the Stoxx 600 index provisionally climbing 0.34%, according to CNBC. Construction led Stoxx sector gains, up 1.9%, as industrials rose 1.3%. Telecoms posted the steepest losses, down 1.65%.
The Stoxx 600 index has seen a rise in recent days, with CNBC reporting that the index has been bolstered by strong performances in the construction and industrial sectors. CNBC also reported that the U.S.-China trade war is likely to be disinflationary for Europe, according to Jari Stehn, chief European economist at Goldman Sachs.
In an interview with CNBC, Stehn discussed his outlook for the region’s economy, noting that the trade tensions between the U.S. and China are likely to have a disinflationary impact on Europe. This view is based on the fact that a stronger U.S. dollar, which often accompanies a trade war, can lead to higher import prices and lower inflation.
U.S. stocks opened little changed on Friday morning, after notching three days of back-to-back gains. The Dow Jones Industrial Average shed 65 points, or 0.2%, while the S&P 500 and Nasdaq Composite were both trading around flat, as reported by CNBC.
In other news, the Bank of Russia held its key interest rate steady at 21% on Friday, according to CNBC. Policymakers confirmed their inflation forecast of 7% to 8% in 2025, pledging to keep monetary conditions “as tight as necessary to return inflation to the target in 2026.”
The Bank of Israel chief, Amir Yaron, predicts two interest rate cuts in the next year, despite inflation being at 3.3%, above the government’s target, as quoted by CNBC. Yaron noted that inflation has been higher at the end of 2024 and start of 2025 in light of higher demand and lower supply of labor, given the high proportion of working-age Israelis deployed to serve in the war in Gaza.
In corporate news, beaten-up chip stock BE Semiconductor rose more than 5% at open after analysts at Deutsche Bank upgraded it to “buy”, as reported by CNBC. Shares of BESI have fallen by 27% so far this year.
Citi strategists said analyst earnings downgrades are contrarian ‘buy’ signal, according to CNBC. Analysts have downgraded earnings estimates for European companies to “recessionary” levels, which could indicate a contrarian “buy” signal.
U.K. retail sales volumes rose for the third consecutive month in March by 0.4%, beating gloomy expectations of a 0.3% decline, as reported by CNBC. Clothing and outdoor retailers said that good weather had boosted sales, according to the Office for National Statistics, offsetting a decline in supermarket sales.
France-based jet engine maker Safran beat investors’ expectations for the first quarter and offered “strong confidence” in achieving its full-year targets amid a U.S.-led global trade war, according to CNBC. Safran reported 7.3 billion euros in first-quarter 2025 sales, rising by 14% on an organic basis and beating expectations of a 12.6% hike.
Finally, China is considering suspending its 125% tariff on certain U.S. goods, including medical equipment and industrial chemicals, according to a report by CNBC, citing sources familiar with the matter. The offshore yuan strengthened slightly to 7.284 against the greenback.
The market’s strong rebound reflects growing confidence that the most adverse outcome can be avoided, though upcoming news flow will likely continue to drive short-term swings, according to UBS, as quoted by CNBC. CNBC will continue to provide updates on the markets and economy as the situation develops.
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