Finance
European equities gain for second week on jobs data and trade hopes
Published by Global Banking & Finance Review®
Posted on June 6, 2025
3 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 6, 2025
3 min readLast updated: January 23, 2026
European equities gained for the second week, driven by strong U.S. jobs data and trade optimism. The financial sector led gains, while trade tensions eased.
By Purvi Agarwal, Sanchayaita Roy and Pranav Kashyap
(Reuters) -European shares rose for a second straight week, buoyed by robust U.S. employment figures and diminishing concerns over trade friction that had previously rattled investor confidence.
The pan-European STOXX 600 rose 0.3% on Friday, and logged a 0.6% gain for the week.
The United States' better-than-expected jobs report relieved anxieties regarding the U.S. labour market's resilience, likely prompting traders to reassess how President Donald Trump's trade policies might impact employment trends.
"The data fuelled optimism that the U.S. jobs market, and so the U.S. economy, is weathering the Trump tariff shock better than expected," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Market sentiment drew additional support from signs of easing in the U.S.-China trade relationship following Thursday's telephone conversation between Trump and Chinese President Xi Jinping.
Still, the market was also reminded this week of protectionist fervour, as the White House's doubled tariffs on steel and aluminum imports took effect.
The automotive sector, particularly exposed to these metal duties, bore the brunt, shedding 1.8% over the week.
German Chancellor Friedrich Merz indicated he would pursue a deal for duty-free U.S. car imports into Europe in exchange for equivalent tariff waivers on European exports to the United States.
Other bourses such as Germany's DAX and France's also recorded a second straight week of gains, while and Spain's IBEX logged its eight consecutive week of advances - its longest in nearly four months.
The European Central Bank's widely anticipated interest rate cut was overshadowed by President Christine Lagarde's hawkish signals suggesting the monetary easing cycle may be approaching its conclusion. The stance prompted traders to dial back expectations for further rate reductions.
Markets are also monitoring whether the public spat between Trump and Tesla CEO Elon Musk could spill over into broader markets.
"Comments from Musk yesterday about Trump tariffs, putting the U.S. in recession in the second half of this year combined with weak data this week is causing investors to sit out for the time-being," said Fiona Cincotta, senior market analyst at City Index.
On Friday, the financial sector emerged as the standout performer, propelled by UBS, which rose 3.8% after Swiss authorities proposed more stringent rules that could require an additional $26 billion in core capital reserves for the banking giant.
Among other stocks, Dassault Systemes fell 1.2% after the French software company extended the target period of its medium-term earnings per share forecast by one year.
Renk fell 6.2%, placing it among the worst performers on the STOXX 600, after Exane BNP Paribas downgraded the stock to "underperform" from "neutral".
On the macroeconomic front, German exports and industrial production contracted more severely than anticipated in April, as U.S. demand faltered following months of accelerated purchasing activity driven by tariff anticipation.
Across the Channel, British housing prices experienced a steeper-than-expected decline in May.
(Reporting by Purvi Agarwal, Sanchayaita Roy, Ragini Mathur and Pranav Kashyap in Bengaluru; Editing by Sherry Jacob-Phillips and Barbara Lewis)
European shares rose due to robust U.S. employment figures and diminishing concerns over trade friction, which had previously affected investor confidence.
The better-than-expected U.S. jobs report relieved anxieties about the labor market's resilience, prompting traders to reassess the impact of President Trump's trade policies.
The automotive sector faced challenges due to doubled tariffs on steel and aluminum imports, resulting in a 1.8% decline over the week.
Chancellor Friedrich Merz indicated he would pursue a deal for duty-free U.S. car imports into Europe in exchange for equivalent tariff waivers on European exports to the U.S.
The article noted that German exports and industrial production contracted more severely than anticipated, while British housing prices experienced a steeper-than-expected decline.
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