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European markets are expected to open higher on Wednesday as global market sentiment rebounds amid receding concerns over a trade war between the U.S. and China, and President Donald Trump's criticism of the U.S. Federal Reserve.
The U.K.'s FTSE 100 index is expected to open 86 points higher at 8,418, Germany's DAX up 457 points at 21,739, France's CAC 84 points higher at 7,402 and Italy's FTSE MIB 446 points higher at 35,906, according to data from IG.
Global markets rallied Tuesday on hopes of an eventual breakthrough in the trade standoff between the U.S. and China, sending U.S. stocks sharply higher. Trump indicated that final tariffs on Chinese exports to the U.S. "won't be anywhere near as high as 145%." However, he added that the duties "won't be 0%."
U.S. stock futures popped and Asia-Pacific markets also got a boost overnight after the president said he has "no intention" of firing U.S. Federal Reserve Chair Jerome Powell before his term ends next year.
Trump has repeatedly criticized Powell and demanded that interest rates be cut, raising fears that he would seek to remove him from his post at the central bank, which has traditionally operated with independence from government.
Investors in Europe will be keeping an eye on earnings from NatWest and Heathrow Airport on Wednesday. Data releases will include the latest purchasing managers' index data on activity in the euro zone's services and manufacturing sectors.
SAP profits jumped 60% in first quarter
The headquarters of SAP AG, Germany's largest software company, on Jan. 8, 2013, in Walldorf, Germany.
Thomas Lohnes | Getty Images News | Getty Images
SAP announced Wednesday that its first-quarter operating profit had risen by 60% year on year to hit 2.3 billion euros ($2.6 billion).
It marked a major turnaround from the same period in 2024, when the company recorded a 787 million euro loss.
The German software giant, which last month overtook Novo Nordisk to become Europe's most valuable public company, said revenue had jumped 12% to 9 billion euros, with its cloud backlog up 28% year on year.
Earnings per share jumped 79% on an annual basis to 1.44 euros.
SAP CEO Christian Klein said in a statement that the results showed "our success formula is working."
"SAP's business model remains resilient in uncertain times," he said. "Our AI-powered portfolio enables companies to navigate supply chain disruptions in over 130 countries and to unlock efficiencies with agility and speed."
— Chloe Taylor
Volvo sales slow by 7% as tariffs uncertainty takes a toll
A Volvo EX30 fully electric vehicle at the Everything Electric London 2024 at ExCel on March 28, 2024.
John Keeble | Getty Images News | Getty Images
Swedish vehicle manufacturer Volvo said on Wednesday that its net sales contracted by 7% year on year in the first quarter of 2025, citing U.S. President Donald Trump's tariffs regime.
Vehicle sales were 9% lower on an annual basis, the company said, while the underlying service business had grown by 2% from the previous year.
"As the quarter went by, there was increased uncertainty surrounding tariffs and their effect on global trade," Martin Lundstedt, President and CEO of Volvo, said in a statement alongside the quarterly report.
"The lower vehicle volumes affected our profitability, but we nonetheless generated an operating income of SEK 13.3 billion ($1.39 billion) with a margin of 10.9%."
A year earlier, quarterly operating income came in at 18.2 billion Swedish krona, while Volvo's operating margin had stood at 13.8%.
— Chloe Taylor
Spot gold slides from record high as Trump's stance on China and Fed chair boosts sentiment
Spot gold fell Wednesday after crossing the $3,500 for the first time earlier in the week, following U.S. President Donald Trump's conciliatory comments on the U.S' trade relations with China as well as the Federal Reserve chair.
The precious metal had slid 0.55% as at 8.50 a.m. Singapore time to trade at $3362.85 per ounce.
Spot gold
— Amala Balakrishner
Trump says he doesn’t plan to get rid of Fed Chair Jerome Powell
President Donald Trump said that he has "no intention" of firing Federal Reserve Chair Jerome Powell.
When asked whether he had intentions of removing the central bank leader, Trump said, "None whatsoever." The president spoke at the Oval Office late Tuesday.
Stock futures opened sharply higher after Trump's comments, with Dow futures surging 500 points.
Powell's term as Fed chair will end in May 2026.
—Kevin Breuninger, Darla Mercado
European markets: Here are the opening calls
European markets are expected to open higher on Wednesday as global market sentiment rebounds following a bout of volatility.
The U.K.'s FTSE 100 index is expected to open 86 points higher at 8,418, Germany's DAX up 457 points at 21,739, France's CAC 84 points higher at 7,402 and Italy's FTSE MIB 446 points higher at 35,906, according to data from IG.
Earnings are set to come from NatWest and Heathrow on Wednesday. Data releases will include the latest purchasing managers' index data on activity in the euro zone's services and manufacturing sectors.
— Holly Ellyatt
English (US)