Europe Stocks Close Mostly Higher As Tariffs Concerns Ease For Now

FRANKFURT, Feb 6 (Bernama-dpa-AFX) -- European stocks closed mostly higher on Wednesday with investors shrugging off concerns about tariffs for now and focusing on corporate earnings and regional economic data. Investors digested the data on manufacturing and services sector activity in European countries, reported German news agency dpa.

With US President Donald Trump's tariff threats against several major trading partners raising fears of a prolonged trade war, the outlook for global economic growth remains somewhat uncertain.

The pan European Stoxx 600 climbed 0.47 per cent. The UK's FTSE 100 gained 0.61 per cent Germany's DAX ended higher by 0.37 per cent and France's CAC 40 closed down by 0.19 per cent. Switzerland's SMI ended stronger by 0.83 per cent. Among other markets in Europe, Belgium, Denmark, Finland, Ireland, Portugal, Russia and Spain ended higher.

Greece, Iceland, Norway, Poland, Sweden and Turkey closed weak, while Austria and Netherlands ended flat.

In the UK market, GSK climbed 7.61 per cent. The pharmaceutical giant reported robust 2024 performance and lifted its long-term sales outlook. Fresnillo closed nearly 6 per cent up. Marks & Spencer gained 3.65 per cent and Endeavour Mining rallied 3 per cent. Tesco, Land Securities, Schrodders, Sainsbury (J), LondonMetric Property, BT Group, Beazley, M&G, Taylor Wimpey, British Land Company, British American Tobacco and Phoenix Group Holdings closed higher by 2 per cent to 2.7 per cent. Diageo, DCC and Croda International lost 3.2 per cent to 4 per cent. Spirax Group, Prudential, Halma, Diploma, Ashtead Group and Pershing Square Holdings ended down by 1.2  per cent to 2.2 per cent.

In the German market, Vonovia climbed nearly 3.5 per cent, Infineon gained about 2.8 per cent and Siemens Energy closed 2.6 per cent. Zalando gained 2 per cent, while SAP and Siemens Healthineers ended higher by about 1.4 per cent and 1 per cent, respectively. Symrise, Continental, Daimler Truck Holding, Sartorius, Mercedes-Benz, Volkswagen, BMW and Porsche lost between 1.4 per cent and 2.7 per cent.

In the French market, Publicis Groupe gained more than 2 per cent. Unibail Rodamco climbed about 1.3 per cent. TotalEnergies gained 1.7 per cent. The company raised dividends and maintained the pace of share buybacks despite reporting a drop in fourth-quarter earnings.Dassault Systemes, ArcelorMittal, Essilor, Sanofi, Saint-Gobain and Capgemini posted moderate gains. Credit Agricole moved higher after reporting better-than-expected earnings on higher revenue in the final quarter of 2024. Pernod Ricard closed nearly 4 per cent down. Renault lost 2.7 per cent, while STMicroElectronics, Schneider Electric, L'Oreal, BNP Paribas, Vivendi, Michelin, Veolia, Kering and LVMH lost 1.3 per cent to 2.4 per cent.

On the economic front, the HCOB Eurozone Composite PMI rose to 50.2 in January of 2025 from 49.6 in the previous month, in line with the preliminary estimate and ahead of expectations of 49.7.

The services sector PMI came in at 51.3 for January, down from 51.6 in December 2024, while the manufacturing sector PMI score came in at 46.6, compared to 45.1 in December. 

The HCOB Germany Composite PMI was revised up to 50.5 in January 2025 from a preliminary reading of 50.1 and 48.0 in December, marking its first expansion in seven months. The services sector expanded in January, with the PMI reading coming in at 52.5, while the manufacturing sector contracted at a slower pace, with the PMI score coming in at 45.0.

The HCOB France Composite PMI for January 2025 was revised down to 47.6, from the flash estimate of 48.3, just above December's 47.5. That marks the fifth consecutive monthly contraction in output. Both manufacturing and services contributed to the downturn in economic activity in January, with the manufacturing sector declining at a slower pace. 

The manufacturing PMI came in with a score of 45 for January, compared to 41.9 in December 2024. The services PMI came in at 48.2 for January, down from 49.3 in December.

France's industrial production fell 0.4 per cent month-on-month in December 2024, following a downwardly revised 0.1 per cent increase in November. The drop was driven by a 0.7 per cent contraction in manufacturing output.

The S&P Global UK Composite PMI rose to 50.6 in January of 2025 from 50.4 in the previous month, recovering from a 14-month low. The services sector PMI reading came in at 50.8 for January, after a 51.1 score a month earlier, while the manufacturing PMI came in at 48.3 vs 47.0. 

-- BERNAMA-dpa-AFX