European Stocks Retreat Amid Trade Concerns and Earnings Focus

European stocks closed lower as investors reacted to tariff announcements and focused on earnings. Concerns about possible reciprocal tariffs from the U.S. persisted, while some companies reported fluctuating earnings. Investors remain cautious.

Date: 14-02-2025

AI Rating: 6

Impact on Earnings per Share (EPS)
Natwest Group reported an increase in EPS, rising to 53.1 pence from 47.7 pence in the previous year, signaling positive profitability metrics. Additionally, Hermes International's EPS also increased significantly, growing from EUR41.12 to EUR43.87 per share.

Revenue Growth
Natwest Group's net interest income reached 11.28 billion pounds, up from 11.05 billion the previous year, while its non-interest income was slightly lower at 3.43 billion compared to 3.70 billion. Hermes International exhibited strong revenue growth, with a jump of nearly 18%, bringing total revenue to EUR15.170 billion from EUR13.427 billion the previous year.

Market Sentiment
The overall sentiment in European markets was mixed, with some gains and losses across major indices. While France's CAC 40 posted a small gain, other indices such as Germany's DAX and the UK's FTSE 100 saw declines. The overall market weakened amidst profit taking and tariff-related concerns.

Global Influences
U.S. President Trump's announcement of reciprocal tariffs added to the caution among investors. Additionally, the positive momentum earlier in the week was attributed to expectations of monetary easing from central banks and hopes for resolution regarding the Russia-Ukraine conflict, both factors that could significantly affect European market conditions.

Stocks: NWG RMG BMW DDAIF SNY MT