European stock markets closed significantly higher on Tuesday, aided by the euro strengthening, as well as positive earnings news from other sectors. The euro area is starting to be seen as a safe haven. This change marks a new focus area after U.S. President Donald Trump bought and paid for the disruption of international trade through his various tariffs.
That’s what Isabel Schnabel, member of the European Central Bank’s Executive Board, underscored with this shift. She added that “a new European growth narrative is being written, and a momentum is building to go forward on these reforms.” She clarified in her initial post that the euro appreciated by about 9% relative to the U.S. dollar over 2025. Such a boost provides a strong eurozone counterbalance to global economic turbulence.
The FTSE 100 index in London gained 0.9%, with France’s CAC and Germany’s DAX advancing by 0.75% and 0.3% in early trading. In London, the British pound was 0.2% higher against the U.S. dollar at 6:29 a.m., adding to the positive sentiment in the market.
Both growth and struggles were on display as a number of major companies announced their latest financial results. In the Q1 of 2025, just a Swiss Life proudly declared a 3%-yoy-increase in the fee income ☺. They formed a successful outcome of 659 million Swiss francs, or $791 million. This impressive growth is a testament to the company’s strong performance in its core portfolio management business.
Lagercrantz booked stellar results as well, reporting a 16% annual profit rise thanks to its “build-and-buy” acquisition focused business model. The firm was able to bolster its position in the market extensively, having finalised up to seven acquisitions in the course of the financial year.
“The business concept is to acquire small and medium-sized leading technology companies and get them to grow and develop in a positive way – a so-called ‘buy-and-build’ strategy,” – Jörgen Wigh
At the same time, Vodafone Group will be reporting its own 2025 financial year results. But something seemed off last year for the telecommunications giant. It announced a full-year operating loss of 411 million euros ($462.7 million) largely due to impairment charges for its business in Germany and Romania, taking them to 4.5 billion euros. But on the bottom line, Vodafone’s adjusted EBITDAaL came in at 11 billion euros, just as guided.
Shares slumped 2.57% for UBS. This swoon came in the wake of a report from Bloomberg News, which indicated that the Swiss government may force the bank to maintain an additional $25 billion in loss-absorbing capital. Analysts from Sydbank commented on the situation, saying “We admit that Novo Nordisk is currently facing challenges on the American market as a result of compounders’ copies of Wegovy. We remind you that the share price has more than tripled during Lars Fruergaard Jorgensen’s tenure as CEO of Novo Nordisk.”
Meanwhile over in the private sector, fast food chain Greggs had impressive same store sales growth thanks to “product innovation.” The firm reported that its portfolio of over-ice beverages and hot foods were especially strong. Greggs has been on a store opening spree, opening 20 new stores in the period. This raises its store count to 2638 locations. Looking ahead to 2025, the company says it plans to grow that figure to 140–150 new shops.
Market analysts have an array of opinions on Vodafone’s future prospects. JPMorgan analyst Akhil Dattani remarked, “We expect consensus to lower German estimates but raise [rest of the world] forecasts, such that group forecasts overall are broadly unchanged.” According to UBS analyst Polo Tang, any worse-than-expected drop in German service revenues might give shares of Vodafone a much-needed lift. Still, he cautions that the opportunity for future cuts in free cash flow could weigh on its shares in the short term.
The optimism is certainly palpable on the European stages as companies navigate the new macroeconomic factors and changing consumer preferences.
“The spring’s discussions around trade barriers are creating uncertainty, but despite this, the situation remains stable and positive for most of the Group’s businesses,” – Wigh
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