LONDON — The U.K.’s FTSE 100
The index
Most other European markets closed for the May 1 holiday. Stock exchanges in Germany, France, Italy and Spain are closed.
U.K. earnings included bank Lloydsreporting a near 7% profit decline in the first quarter amid higher costs.
Housebuilder Persimmontrading update that its home completion targets were on track, while the London Stock Exchange Group (LSEGposted a 7.8% year-on-year rise in first-quarter income on an organic basis. Shares ended lower by 2.3%.
Rolls-Roycereiterated its 2025 profit and cash flow guidance and said it expected to be able to offset to impact of U.S. tariffs on its business through mitigated actions.
Outside of the earnings reaction, shares of Danish pharmaceutical giant Novo Nordiskunveiled plans to increase patient access to Novo’s megahit weight loss drug Wegovy. From July, Caremark — CVS Health’s pharmacy benefit management subsidiary — will make Wegovy its preferred GLP-1 drug for obesity.
Novo Nordisk’s share rally also comes after Eli Lillybetter-than-expected first-quarter earnings on the back of surging demand for weight-loss and diabetes treatments.
Investors are also monitoring news that Spanish regulators approved the takeover of lender Banco Sabadell by rival BBVAnow subject to government review and further “remedies” by the banks.
Europe’s regional Stoxx 600U.S. economy contracted 0.3% in the first quarter.
Economic sentiment in the region was helped by data showing the euro zone grew by a higher-than-expected 0.4% in the first quarter.
However, April was a weak month for European stocks more broadly, as the impact of U.S. tariff policy weighed. The Stoxx 600 lost 1.2% overall, though this was pared from a 4.2% decline in March.
Earnings have been in focus this week, with European companies warning of price rises and huge uncertainty in their outlooks due to tariffs, while several banks including UBSDeutsche BankBarclaysexpectations.
“Bank stocks overall still look pretty good globally… those growth risks that’s we’re facing now that are centered around the U.S., that should be helping European financials,” Max Kettner, chief multi-asset strategist at HSBC, told CNBC’s “Europe Early Edition” on Thursday.
“Overall it is still time to play defense, particularly in the U.S., the likes of small caps, consumer cyclicals are the ones you really want to avoid, go more toward the defensives, your staples, your health-care, your utilities.”
U.S. stock futures ticked higher early Thursday after Big Tech earnings beats from Meta Platforms and Microsoft
— CNBC’s Annika Kim Constantino contributed to this report.
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