European stocks rallied on Wednesday as German leaders agreed to loosen the country’s so-called debt brake and China ramped up stimulus to guard its economy from changes ‘unseen in a century.’
Investors were also reacting to comments from U.S. Commerce Secretary Howard Lutnick that President Donald Trump will “probably” announce a deal to reduce tariffs on Canada and Mexico.
The pan European STOXX 600 was up 1.3 percent at 558.09 after tumbling 2.1 percent and logging its worst day since August 2024 on Tuesday.
The German DAX surged 2.9 percent, France’s CAC 40 gained 1.9 percent and the U.K.’s FTSE 100 was up 0.6 percent.
Construction firms and arms makers jumped in Germany as CDU leader Friedrich Merz unveiled plans for a €500 billion special fund to bolster the nation’s infrastructure and defense spending.
Heidelberg Materials soared 10.6 percent, Hochtief surged 13.6 percent and Rheinmetall rallied nearly 4 percent.
Online sports betting and gaming company Flutter Entertainment advanced 1.7 percent as Q4 earnings beat estimates.
French reinsurer SCOR SE declined 2 percent as it posted a P&C combined ratio of 83.1 percent for Q4 2024, a deterioration of 7.5 points from the fourth quarter of 2023.
Schaeffler AG lost 2 percent. The German machine and car parts maker gave a gloomy outlook for 2025.
Adidas declined 2.7 percent. The sportswear firm said it expects slightly slower sales growth of up to 10 percent this year after a strong 2024.
Chemicals giant Bayer rallied 4 percent as it raised the prospect of a return to earnings growth next year.
Beazley surged 3.3 percent after the British insurer reported record profit before tax of $1.423 billion for full year 2024.
Balfour Beatty slumped 5.2 percent. The international infrastructure group announced that Leo Quinn will step down from the Board later this year.
Market Analysis
European Shares Rally On Hints Of Tariff Relief
2025-03-05 09:04:05
