European stock markets rebound strongly: Easing of the US-China trade war boosts the market, UK stocks achieve a 15-day winning streak, Airbus's performance boosts its stock price.

Taiwan • Business • 05/04 23:01
European stock markets rebound strongly: Easing of the US-China trade war boosts the market, UK stocks achieve a 15-day winning streak, Airbus's performance boosts its stock price.

On May 2, 2025, European stock markets rose across the board due to signs of easing in the trade war between the US and China, with the pan-European STOXX 600 index up 1.67%. The UK's FTSE 100 index rose for the 15th consecutive day, setting a new record. Airbus announced first-quarter results which exceeded expectations, leading to a 5.3% rise in its stock price. Major stock markets in Germany, France, and other countries also saw gains, reflecting a positive market response to the improved trade conditions.

Key Updates

05/06 01:01

U.S. stocks closed down across the board: Berkshire Hathaway declined 5.12% following Buffett's announcement of retirement, TSMC ADR dropped 1.61%, and trade war tensions persist.

On May 6, 2025, major U.S. stock indices closed lower across the board, ending a multi-day rally. The market was affected by the escalation of the U.S.-China trade war, corporate earnings reports revealing tariff pressures, and Warren Buffett's announcement that he will retire at the end of the year. Berkshire Hathaway's stock dropped 5.12%, TSMC's American Depositary Receipts (ADR) fell 1.61%, and tech stocks such as Apple and Netflix also faced pressure. Although Trump indicated the possibility of reaching a partial trade agreement, the market's reaction was muted, and risk aversion sentiment heightened.

05/05 22:00

U.S. stocks fell on Monday: OPEC+ increased production, causing oil prices to plummet, with energy stocks taking the biggest hit, as Trump's trade policy and the Federal Reserve meeting drew attention.

The U.S. stock market closed lower on May 5, ending the S&P 500's nine-day streak of gains. OPEC+ announced an increase in oil production of 400,000 barrels per day starting in July, leading to a drop in oil prices and a setback for energy stocks. Trump proposed imposing a 100% tariff on foreign films, causing unease in the market. Investors are focusing on the Federal Reserve meeting on May 6 and 7, seeking guidance on interest rate policy.

05/05 18:32

On May 5, 2025, the U.S. stock market experienced a pullback as the Dow Jones Industrial Average and S&P 500 indices declined due to Trump's tariff policy.

On May 5, 2025, after nine consecutive trading days of gains, the U.S. stock market pulled back, with the Dow Jones Industrial Average falling by 0.28% and the S&P 500 Index slightly rising by 0.06%. The market was affected by President Trump's announcement of a 100% tariff on films produced overseas, escalating trade tensions. Investors are focused on the Federal Reserve's interest rate decision on May 7, which is expected to remain unchanged. The stock prices of Netflix, Warner Bros. Discovery, and Disney fell, while Skechers' stock price surged by 25% due to acquisition news.

05/05 18:00

Michael Wilson, Chief Strategist at Morgan Stanley: U.S. stocks show strong resilience, recommends investing in high-quality growth stocks and large-cap companies.

Morgan Stanley's chief strategist Mike Wilson is optimistic about U.S. stocks, despite their underperformance compared to international markets since 2015. He believes that large U.S. companies and high-quality growth stocks are resilient in a post-cycle economy, supported by the depreciating dollar, stable corporate earnings, and improvements in trade agreements with China. If the Federal Reserve adopts a dovish stance and the 10-year U.S. Treasury yield falls below 4%, it could boost the S&P 500 index. Wilson also favors healthcare and industrial stocks and has increased the target price for Tenet Healthcare to $175.

05/05 07:06

U.S. stock futures are down across the board: Dow is down more than 270 points, indicating market caution.

On the afternoon of May 5, 2025 (Taipei time), futures for the three major U.S. stock indices fell. Dow Jones Industrial Average futures fell by 277 points, S&P 500 futures fell by 38.5 points, and Nasdaq 100 futures fell by 130.75 points, reflecting the market's cautious sentiment ahead of the new week's opening. According to real-time data, as of 1:34 PM Taipei time, all three major futures indices were trending downward, indicating investors' cautious attitude towards the market environment.

05/04 23:01

European stock markets rebound strongly: Easing of the US-China trade war boosts the market, UK stocks achieve a 15-day winning streak, Airbus's performance boosts its stock price.

On May 2, 2025, European stock markets rose across the board due to signs of easing in the trade war between the US and China, with the pan-European STOXX 600 index up 1.67%. The UK's FTSE 100 index rose for the 15th consecutive day, setting a new record. Airbus announced first-quarter results which exceeded expectations, leading to a 5.3% rise in its stock price. Major stock markets in Germany, France, and other countries also saw gains, reflecting a positive market response to the improved trade conditions.

05/04 23:01

All four major U.S. stock indices rose across the board on May 1: The S&P 500 achieved its longest streak of consecutive gains since 2004, boosted by employment data and trade talks.

On May 1, 2025, the four major U.S. stock indices rose, with the S&P 500 index rising for the ninth straight trading day, marking its longest winning streak since 2004. The rally was fueled by April's non-farm employment data beating expectations and indications of renewed trade talks between the U.S. and China regarding the fentanyl issue. Non-farm payrolls increased by 177,000, while the unemployment rate held steady at 4.2%. Expectations of easing U.S.-China trade tensions bolstered market confidence, leading to a rise in the stock market.

05/04 11:02

Earnings reports from tech giants drive a rebound in US stocks, while Trump's tariff policy sparks inflation concerns.

Strong earnings reports from tech giants have spurred a rebound in the US stock market, with the S&P 500 index rising for nine consecutive days, achieving the longest rally in 20 years. The Trump administration's push for a new round of high tariffs has sparked market concerns over corporate profits and inflation pressures. Investors are closely monitoring the Federal Reserve's interest rate decisions and inflation data to identify medium- to long-term investment opportunities.

05/03 21:59

U.S. stocks have risen for nine consecutive days: Strong non-farm payroll data and progress in U.S.-China trade talks boost the market's recovery

On May 3, 2025, the U.S. stock market rose for nine consecutive days, with the S&P 500 index achieving its longest rally since 2004, recovering the losses incurred since Trump's announcement of "reciprocal tariffs" on April 2. This rally was driven by strong non-farm employment data, advancements in U.S.-China trade negotiations, and market attention on the Federal Reserve's interest rate decision meeting. Non-farm employment rose by 177,000, exceeding expectations, with the unemployment rate remaining at 4.2%. The market anticipates that the Federal Reserve will postpone rate cuts until July. The U.S.-China trade negotiations showed signs of progress, particularly concerning the fentanyl issue.

05/03 15:02

In 2025, the first-quarter decline in U.S. GDP triggered market volatility, but robust employment figures and strong tech earnings aided the rebound of U.S. stocks.

In the first quarter of 2025, the US GDP experienced an annualized contraction of 0.3%, raising market concerns about an economic slowdown and leading to stock market volatility. President Trump blamed the Biden administration's economic legacy for this. The April jobs report indicated a robust labor market, and earnings from tech giants surpassed expectations, leading US stocks to climb for nine straight days. The S&P 500 index marked the longest streak since 2004, recouping losses following the announcement of tariff policies.

Breakthrough in US-China Trade War, European Market Sentiment Warms

Since US President Trump announced a 145% tariff on Chinese goods on April 2, global markets have experienced significant volatility. However, recently both the US and China have shown willingness to negotiate, showing signs of easing tensions. China's Ministry of Commerce stated it is "evaluating" the possibility of negotiating tariffs with the US, and reports suggest Beijing has quietly exempted 131 categories of US goods from tariffs, valued at approximately $40 billion. Trump also mentioned in public that he would consider reducing tariffs on China at some point in the future.

These developments have boosted market confidence, leading to a rebound in European stocks. The pan-European STOXX 600 index rose by 8.83 points on May 2, closing at 536.43 points, a 1.67% increase, almost fully recovering the losses since early April. Industrial and technology stocks led the gains, indicating the market's sensitivity to improvements in the trade environment.

UK FTSE 100 Sets Record for Longest Winning Streak

The UK stock market stood out. The FTSE 100 index rose by 1.17% on May 2, closing at 8,596.35 points, marking its 15th straight day of gains, the longest winning streak since the index was established. According to Share Talk, this rally has lasted over two weeks, with a 2.15% increase just in the past week.

The FTSE 250 index also rose by 0.52%. Market analysts noted that the UK, with its relatively neutral trade system, has many blue-chip stocks with defensive characteristics, performing steadily amid global trade turmoil.

Airbus Exceeds Expectations, Stock Price Soars

European aerospace giant Airbus released its first-quarter 2025 financial results on April 30, with revenue reaching $15.39 billion, far exceeding the market expectation of $13.07 billion. Earnings per share were $0.27, also better than the expected $0.21. The company reaffirmed its full-year outlook and announced an increase in dividends to $0.3871 per share.

This news drove Airbus's stock price up by 5.3% on May 2. The company also called for the US and Europe to resume the aerospace industry mutual tariff exemption agreement to further strengthen its competitiveness in the global market.

Major European Stock Indices Rise Across the Board

Apart from the UK, other major European stock markets also saw gains. Germany's DAX index increased by 2.62%, ending at 23,086.65 points; France's CAC 40 index rose by 2.33%, ending at 7,770.48 points. Stock markets in Switzerland, Italy, and Spain also recorded gains of over 1%.

According to StockQ data, as of the close on May 2, the performance of major European stock indices was as follows:

  • Germany DAX: +2.62%, ending at 23,086.65 points
  • UK FTSE 100: +1.17%, ending at 8,596.35 points
  • France CAC 40: +2.33%, ending at 7,770.48 points
  • Switzerland SMI: +1.18%, ending at 12,259.55 points
  • Italy FTSE MIB: +1.91%, ending at 40,673.36 points
  • Spain IBEX 35: +1.13%, ending at 1,327.03 points
  • Netherlands AEX: +2.25%, ending at 897.63 points

Additionally, the pan-European STOXX 600 index has risen by approximately 7.95% year-to-date, indicating that the overall market is still trending upward.

References

People Also Ask...

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