European stock indices remained balanced during today’s trading session, as investors focused on corporate earnings and inflation data, following a rally driven by easing global trade tensions. The German DAX index rose by 0.3%, while France’s CAC 40 was largely unchanged, and the UK’s FTSE 100 saw a slight decline—reflecting a cautious sentiment and a tendency to lock in recent gains.
On the economic front, Germany’s annual inflation rate dropped to 2.2% in April, reinforcing expectations that the European Central Bank may consider another rate cut in the near future. Comments from the Governor of the Bank of France supported this view, noting that inflation in the eurozone is currently under control—unlike in the United States, where trade tensions may contribute to rising price pressures.
From a corporate perspective, several major European companies reported quarterly earnings that exceeded expectations, including Burberry, E.ON, and Ferrovial, which helped boost investor confidence in the region’s ongoing economic recovery.
Conversely, Telefonica missed estimates after posting losses due to a write-down in the value of some Latin American assets. Meanwhile, Alstom projected a rise in operating profits for the next fiscal year, offering a more optimistic medium-term outlook.
Asian markets maintained their positive momentum, especially in Hong Kong, where the Hang Seng index surged 2% following strong results from JD.com and optimism surrounding upcoming earnings from Tencent and Alibaba. In contrast, Japan’s Nikkei 225 dipped 0.14%, dragged by weakness in the paper, transport, and communications sectors. This pullback is seen as a technical correction following earlier gains, amid a lack of fresh local catalysts.
Despite the broader decline, several individual stocks performed strongly. Nexon jumped 17%, Takara Holdings rose 9.4%, and Marui Group hit a five-year high, reflecting strong investor interest in stocks backed by solid financial results.
U.S. inflation data came in weaker than expected, pushing the U.S. dollar lower against most major currencies. The USD/JPY pair fell to 147.09, EUR/JPY slipped to 164.66, and the U.S. Dollar Index declined to 100.70, as traders increasingly priced in the potential for renewed easing by the Federal Reserve if the disinflationary trend persists.
In commodity markets, spot gold dropped to $3,237 per ounce, as appetite for safe-haven assets waned amid improved market sentiment. Meanwhile, crude oil prices retreated after U.S. inventory data showed a significant build in stockpiles, raising concerns about demand. Brent crude fell to $66.32, and WTI crude declined to $63.38 per barrel.
