As Global Markets Recover, Which European Stocks Have Risen?

Tech and consumer cyclical stocks have been the best performers over a week, but they are still in negative territory for the year.

Christopher Johnson 30 April, 2025 | 7:15AM
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As April draws to a close, global stocks have recovered some of their losses from the tariff turmoil at the start of the month. President Donald Trump’s tariff pause for 90 days has helped improve investor sentiment, and there are growing hopes that some key sectors will benefit from ongoing negotiations.

European indexes have joined in the global rally. In the year to date the Morningstar Europe Index is up 7.10%, in sterling terms, and just over 4% in euros, and that’s factoring in the early April meltdown. The STOXX Europe 600 is 2.85% higher in 2025 so far.

A week ago, we looked at how UK stocks participated in the global uplift in share prices. Now we’re looking at how European stocks have fared.

While the recovery is still fragile, the sectors that have picked up in the last week are technology, consumer cyclical, and financial services stocks.

However, in the year to date, consumer cyclical, healthcare, energy and technology sectors are in negative territory, making clear the damage from Trump’s tariff turbulence.

Over a month, only three of the 11 Morningstar sectors are in positive territory, whereas all sectors are positive over one week. And in the year to date, the majority of these sectors have made gains.

SAP Remains Europe’s Largest Stock

Technology stocks have climbed back up after Trump’s administration announced tariff exemptions for smartphones, computers and other electronics.

Dutch semiconductor giant ASML ASML was hit hard in the April selloff, with fears that tariffs would impact ASML’s ability to ship machines, parts, and tools to the US. ASML shares are up 3.2% over the past five days, but in 2025 so far the shares are down 15%, based on closing prices on April 29.

However, German software company SAP SAP escaped the worst impact of the selloff. The stock has remained in positive territory throughout the market rout and is up nearly 7% in the year to date. SAP’s share price has jumped 5.36% over the last five days and the company remains the largest stock in the Morningstar Europe Index.

SAP recently announced a 58% year-on-year rise in its first quarter operating profit to EUR 2.5 billion, beating analyst expectations of EUR 2.2 billion.

LVMH Under Pressure

After technology, consumer cyclicals saw an uptick of 4.77%. LVMH MC has seen its share price rise by 1.10% over the last five days.

LVMH recently lost its crown as Europe’s largest luxury company by market capitalization to Hermès RMS, and shares are off more than 20% in the year to date amid fears over the impact of tariffs on European luxury goods.

However, LVMH already has manufacturing capabilities in the US for its flagship brands Louis Vuitton and Tiffany & Company.

Luxury car producer Mercedes-Benz MBG also saw its share price rise 2.89% over the last five days. The company is having to contend with likely levies of 25% on car exports to the US as well as the impact of higher EU tariffs on electric vehicles imported from China.

Despite the recovery in the stock’s share price, Ola Källenius, the CEO of Mercedes-Benz, said that the global automotive industry is facing the “highest complexity” in more than thirty years.

Automotive stocks have been volatile in April, but close the month on a high as hopes rise of a potential easing of levies on carmakers.

Undervalued European Financial Stocks Jump

European financial services were the third best performer over a one-week period. Financials sold off initially because of fears that Trump’s tariffs would trigger the end of globalization, a global recession, and interest-rate cuts that would hurt profit margins.

Asia-focused bank HSBC HSBA was hit hard in the April selloff, after China and much of Southeast Asia were hit with the most severe tariffs. Now, HSBC shares are up 3% over the past five days.

BNP Paribas BNP and Banco Bilbao Vizcaya Argentaria SA BBVA are both undervalued banking stocks, according to Morningstar metrics, despite the latest gains. BNP Paribas has returned 2.37% and BBVA 1.18% over a one-week period.

These stocks have managed to weather the April volatility: year to date HSBC shares are up nearly 10%, BNP Paribas has gained by more than 25% and BBVA shares are up more than 30%.


The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.

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Christopher Johnson  is data journalist at Morningstar

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