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European Markets Close Higher Amid Earnings Buzz; Volvo Cars Drops 10%

Published on April 29, 2025
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This was CNBC's live blog covering European markets.

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European markets closed higher on Tuesday after investors parsed a flurry of earnings for indications of the impact of U.S. tariffs and global economic uncertainty.

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The Stoxx 600 index provisionally closed higher by 0.4%, with utilities and healthcare sectors leading the gains.

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Regionally, the FTSE 100 closed up 0.6% - its 12th consecutive day of gains and its best run for at least five years. France's CAC 40 and Germany's DAX were up 0.1% and 0.8%, respectively.

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Shares of Volvo Cars shed 10% after the automaker reported a steep first-quarter profit decline and suspended its full-year guidance due to market headwinds.

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Data showed Spain's economy grew 0.6% in the first quarter, in figures released ahead of the wider euro zone reading on Wednesday.

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Stocks traded lower Tuesday morning.

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The S&P 500 dropped 0.3% shortly after the opening bell, while the Nasdaq Composite traded down 0.4%. The Dow Jones Industrial Average traded around the flatline.

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London-listed shares of Associated British Foods - owner of Primark, Kingsmill and Twinings - were down 9.1% by 1:52 p.m., after the company reported a 10% year-on-year drop in adjusted operating profit for the 24 weeks to March.

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Operating profit for the period came in at £835 million ($1.12 billion), above the $816 million expected by analysts polled by LSEG.

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BP CEO Murray Auchincloss discusses the company's strategic reset and the outlook for the business amidst geopolitical turmoil and increased need for energy security.

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British defense group BAE Systems has "tightly aligned" its objectives with those of the U.S. national security strategy - particularly the White House's proposed Golden Dome anti-missile architecture that has drawn in the interest of commercial enterprises since the start of the year.

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"A lot of what we have in terms of capabilities ... are highly relevant to the Golden Dome requirements," the company's Chief Financial Officer Brad Greve told CNBC's "Europe Early Edition" on Tuesday, noting the attention U.S. President Donald Trump's administration has paid to the project, which was mandated through an executive order back in January.

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Inspired by Israel's anti-missile Iron Dome, the defense system will intercept and destroy missiles and incorporate both existing arsenal and new capabilities - potentially putting tens to hundreds of billions of dollars on the table for space and defense companies that still widely depend on national contracts for the brunt of their revenues.

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The White House's so-called Department of Government Efficiency (DOGE) could have a role to play in accelerating the delivery of this and other national acquisition processes.

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"If DOGE can focus its efforts on trying to unpick the bureaucracy and streamline the delivery of procurement to capability, I think that can be a win for everyone," Greve said.

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Washington's focus on the Golden Dome project aligns with Trump's broader emphasis on bolstering defense capacities, which has in the past manifested as criticism against European allies that fell short of their NATO expenditure targets.

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"This administration has definitely called out what everyone knows: a massive underspend in European defense over the last decade," Greve stressed.

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Spain's economy grew by 0.6% in the first quarter of the year, preliminary data from the country's statistics office INE showed on Tuesday.

It marked a slight slowdown from the previous three months, when the Spanish economy saw quarter-on-quarter growth of 0.8%.

Spain is expected to be a bright spot in the European economy this year.

In its latest economic forecasts published earlier this month, the International Monetary Fund said it expected Spain's economy to outperform its regional peers and grow by 2.5% in 2025. Europe as a whole is projected to see economic growth of 1.3% this year, according to the IMF, with EU countries collectively expected to see gross domestic product expand by 1.2%.

British pharmaceutical giant AstraZeneca was 4% lower shortly after the opening bell, after the company posted its first-quarter earnings update.

On Tuesday morning, AstraZeneca reported a 10% year-on-year rise in total revenue, which hit $13.59 billion thanks to double-digit growth in the company's oncology and biopharmaceuticals divisions.

Markets had been expecting quarterly revenue to reach $13.74 billion, according to LSEG data.

Operating profit, which jumped 12% to hit $4.8 billion, exceeded market expectations by around 5%, according to LSEG.

AstraZeneca confirmed its full-year guidance on Tuesday, saying it expected annual revenue to grow by a high single-digit percentage in 2025.

Speaking to CNBC's "Squawk Box Europe" on Tuesday, AstraZeneca CEO Pascal Soriot said the firm did not expect a huge impact from any new U.S. tariffs on pharmaceutical goods, as the company had been working to make its American and Chinese supply chains resilient and most of its U.S. drugs were developed in the United States.

Shares of German arms manufacturer Rheinmetall jumped 5.7% during early trade