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Europe midday: Stocks rebound from six-week low

Mon 04 August 2025 09:16 | A A A

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(Sharecast News) - European stocks were on the rise on Monday, bouncing back from a six-week low, helped by strong gains of 1% or more in Frankfurt, Paris, Milan and Madrid.

Nevertheless, upside was tempered by a more conservative performance in London and losses in Zurich - with Swiss stocks weighed down by tariff concerns.

As a result, the Stoxx 600 benchmark index was up 0.6% at 539.12, rebounding after a 1.9% plunge on Friday to 535.79 - its lowest finish since 23 June - as gloomy US economic data and the launch of Donald Trump's tariff barrage risk appetite.

"European markets are taking a largely optimistic tone this morning, despite the sharp declines seen across US equities on Friday in the wake of a somewhat shocking jobs report," said Joshua Mahony, chief market analyst at Scope Markets.

"That jobs report not only brought a major miss for the payrolls figure, but the sharp downgrade to both May and June readings thus shifting the narrative around how the US economy was operating under the weight of Trump fuelled uncertainty."

Car loans firms jump in London

Shares in UK lenders Lloyds Bank, Close Brothers and S&U jumped after a Supreme Court decision last week rule in favour of motor finance companies over commissions paid to car dealers. The industry had been braced to pay out billions in compensation to customers.

Other banking stocks such as NatWest and Barclays also rose in London, along with European peers Commerzbank, Deutsche Bank, Credit Agricole and Societe Generale.

Switzerland's SMI benchmark was in the red as traders assessed the impact of US President Donald Trump's decision to slap the country with a 39% tariff, hitting names like luxury goods maker Richemont and logistics heavyweight Kuehne & Nagel.

Banking giant UBS was also weighing on the market in Zurich following the news that it is to pay $300m to settle obligations Credit Suisse had to pay to the US Department of Justice, related to mortgages sold in the run-up to the 2008 financial crash. Credit Suisse was purchased by UBS in 2023.

Meanwhile, data out on Monday from the Swiss Federal Statistical Office revealed that inflation rose more than expected in July. The year-on-year change in the consumer price index was a five-month high of 0.2%; economists had expected the rate to hold steady at 0.1%.

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