Europe open: Shares up as investors eye German GDP, US bonds
By Frank Prenesti
Date: Friday 23 May 2025
(Sharecast News) - European markets opened higher on Friday as investors digested revised German GDP figures and latest on US President Donald Trump's plan for massive tax cuts and spending rises.
The pan-regional Stoxx 600 index was up 0.3% to 552 with all major bourses higher.
"Global bond markets are calmer this morning, which is helping risk sentiment. Although the US's 'Big, Beautiful, Bill' has spooked the US Treasury markets this week, rising bond yields seemed to pressurise House Republicans to make cuts to spending, including Medicaid," said XTB research director Kathleen Brooks.
"The Budget will now be debated by the Senate, which could be even more of a moderating force, so the cost of this budget could be far less than the current $3 trillion behemoth it currently is."
In economic news, Germany's economy performed better than expected in the first quarter, with growth unexpectedly picking up, according to revised estimates from the Federal Statistics Office on Friday.
Gross domestic product expanded by 0.4% over the first three months of 2025, compared with the initial estimate of 0.2% growth released last month.
This compares with the 0.2% economic contraction registered in the fourth quarter of 2024 and marked the strongest quarterly growth rate since the third quarter of 2022.
Meanwhile in the UK, retail sales rose more than expected in April, according to figures released on Friday by the Office for National Statistics.
Sales increased 1.2% on the month following a 0.1% jump in March, which was revised down from 0.4% growth. Analysts were expecting a 0.3% increase.
In equity news, auto transport products maker Thule Group jumped after an upgrade to 'buy' from 'hold' by broker Nordea.
Games Workshop fell as the Warhammer maker said it would not repeat record licensing revenues of £51m this fiscal year.
Reporting by Frank Prenesti for Sharecast.com
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