European stock markets reversed earlier losses to close in positive territory on Wednesday, as investors absorbed worse-than-anticipated economic data from the United States. The pan-European Stoxx 600 index finished up by 0.46%, marking its seventh consecutive day of gains. The UK's FTSE 100 also extended its winning streak to 13 consecutive sessions. 🇬🇧🇪🇺

The automotive sector initially saw a decline, with the Stoxx automotive index falling by 1.2%. This occurred despite U.S. President Donald Trump signing an executive order that eased some automotive tariffs. The order maintains a 25% vehicle import rate but lowers the overall impact by increasing duties on products like steel and aluminum. 🚗

Conversely, healthcare stocks performed strongly, with the regional Stoxx Healthcare index rising by 1.3%. Several major pharmaceutical companies, including GSK, AstraZeneca, and Smith+Nephew, indicated in their Q1 earnings reports that they were well-prepared to handle any repercussions from U.S. tariffs. ⚕️

Trump's tariffs have emerged as a significant theme in early corporate earnings, with many companies expressing uncertainty in their forecasts. However, bank profits generally exceeded expectations. Swiss lender UBS reported a better-than-expected net profit of $1.692 billion in the first quarter, while auto giant Stellantis suspended its full-year guidance due to the prevailing uncertainties. 🏦

In positive news for the Eurozone, preliminary data released on Wednesday showed the economy grew by a better-than-expected 0.4% in the first quarter, recovering from stagnation at the end of 2024. 🇪🇺

Gediminas Šimkus, a European Central Bank Governing Council member, stated his support for a quarter percentage point rate cut at the ECB's next meeting in June, noting that U.S. tariffs are expected to be disinflationary for the Eurozone in the short term. 💶

France's CAC 40 and Germany's DAX also closed higher, up by 0.5% and 0.32%, respectively. 🇫🇷🇩🇪

Key Data: 📊

Index/Sector	Closing Change	Winning Streak/Result	Key Figure/Comment
Stoxx 600	+0.46%	7 consecutive days	Overall European market recovery
Stoxx Automotive Index	-1.2%	N/A	Impacted by earnings despite softened US tariffs
Stoxx Healthcare Index	+1.3%	N/A	Strong performance, companies prepared for US tariffs
FTSE 100	N/A	13 consecutive days	Extended winning streak
CAC 40	+0.5%	N/A	Closed higher
DAX	+0.32%	N/A	Closed higher
UBS Net Profit (Q1)	N/A	Better than expected	$1.692 billion
Eurozone Q1 GDP Growth	+0.4%	Better than expected	Followed stagnation at the end of 2024
US Vehicle Import Rate	25%	Maintained	Despite overall tariff reduction

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