European equity markets showed little movement on Friday, wrapping up a mostly positive week marked by a flood of corporate earnings reports and the rollout of tariffs imposed by the Trump administration.
By 07:05 GMT, Germany’s DAX slipped 0.2%, while France’s CAC 40 advanced 0.4%, and the UK’s FTSE 100 inched up 0.2%.
Despite Friday’s subdued trading, major European indices are poised for solid weekly gains, supported by broadly encouraging Q2 earnings. The DAX is set to climb more than 3%, the CAC 40 has risen over 2%, while the FTSE 100 lagged with a modest 0.4% increase.
“Europe is now about 80% through its earnings season. While top-line sales numbers have been slightly underwhelming, earnings growth has been surprisingly strong. Companies across the region have delivered earnings growth of 10% – with a 14% upside surprise compared to expectations,” noted Charles Stanley in a report.
Munich Re Lowers 2025 Revenue Outlook
Friday saw fewer earnings releases from major players. Munich Re (TG:A2TSS7) lowered its insurance revenue forecast for 2025, citing challenging business trends and currency headwinds, alongside softer renewals in July. Nevertheless, the German reinsurer reaffirmed its full-year profit target.
Meanwhile, Dutch insurer NN Group (EU:NN) posted a sharp decline in net profit for H1 2025, hit by losses from government bond sales, derivative revaluations, restructuring charges, and the sale of Turkish operations, offsetting stronger operational results.
Swiss real estate firm Mobimo (TG:M1H) reported a significant profit boost in the first half of 2025, driven by gains from property revaluations and increased income from development projects and property sales.
French game publisher Asmodee Group (TG:2EX) saw first-quarter net sales jump 32% year-on-year, propelled by a 49.9% rise in partner-published game sales.
Tariffs Come Into Force
On the trade front, tariffs introduced by the Trump administration took effect Thursday, with duties reaching as high as 50% on some regional economies.
Though several countries, including the European Union, have negotiated deals with the U.S. to reduce tariff levels, investor concerns linger over the economic consequences.
Coinciding with the implementation of these tariffs, Tokyo’s trade negotiator said the U.S. government promised on Thursday to adjust some overlapping tariffs on Japanese products to prevent double taxation on certain goods.
Away from trade tensions, Moscow confirmed that Russian President Vladimir Putin is scheduled to meet with U.S. President Donald Trump in the coming days, fueling hopes for a potential ceasefire in the Ukraine conflict.
Oil Prices Slide, Set for Sharp Weekly Losses
Oil prices declined on Friday amid fears that the new U.S. tariffs will dampen global economic growth and curb crude demand.
At 03:05 ET, Brent crude futures dropped 0.8% to $65.92 per barrel, while U.S. West Texas Intermediate futures fell 0.9% to $63.31 per barrel.
Both benchmarks are headed for weekly losses between 4% and 5%, their steepest since late June.
Concerns over the long-term impact on global demand have intensified following the Thursday implementation of higher U.S. tariffs targeting multiple trade partners.
Adding to the pressure, oil markets have been adjusting to OPEC+’s recent decision to completely roll back its largest round of production cuts in September—months earlier than initially planned.
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