This morning, Stéphane Boujnah, the CEO of Euronext, visited the CNBC studio in London to engage in a conversation with the anchors of Squawk Box Europe about the current state of regional markets. Boujnah highlighted that interest in Europe had begun to increase prior to the recent political upheaval known as the "Trump moment." However, he noted that the volatility induced by tariffs exacerbated this trend. According to Boujnah, many investors have come to the conclusion that Europe provides a more stable and predictable environment for their investments. He stated, "If you want to have your money in a predictable environment, in a rule of law environment, in an environment where the basic assumption of capitalism operates, then Europe is not a bad place." This shift has led some investors to consider shorting U.S. assets in favor of European investments. While this movement is not massive, Boujnah emphasized that it is significant and ongoing.
In a significant monetary policy shift, the Bank of Russia announced a cut in interest rates from 21% to 20%. This marks the first reduction since September 2022. The central bank reported that the inflation rate in April decreased to 6.2%, down from an average of 8.2% in the first quarter of 2025. Although domestic demand continues to outpace the supply of goods and services, the Bank of Russia indicated that the economy is gradually returning to a balanced growth trajectory. The central bank also noted that it would maintain tight monetary policy for an extended period to achieve its inflation target of 4%.
The European Stoxx Automobiles and Parts index dipped by 0.5% in early trading due to the fallout from a public dispute between Tesla CEO Elon Musk and U.S. President Donald Trump. After the spat, Tesla experienced a staggering loss of $152 billion in market capitalization, marking its largest valuation hit ever. The automotive sector has already been experiencing volatile trading this week, particularly following Trump's decision to double tariffs on steel to 50%. Major car manufacturers were affected, with BMW down by 1%, Volkswagen decreasing by 0.9%, and Stellantis falling by 0.8%.
As of 8:17 a.m. London time, Europe's Stoxx 600 index showed a slight increase of approximately 0.02%, following three consecutive days of positive trading. The FTSE 100 in the U.K. led the way with a 0.15% rise, buoyed by gains in oil and gas stocks due to increasing crude prices. However, Germany's DAX and France's CAC 40 indices experienced declines of 0.2% and 0.1%, respectively. Investors are closely monitoring the ongoing tensions between Trump and Musk, which have escalated into a major public conflict. Musk criticized Trump's spending bill, leading to a series of exchanges that have put Tesla's government contracts in jeopardy.
Good morning from London! As traders prepare for the final trading session of the week, European stocks are anticipated to see a downward trend. Currently, FTSE 100 futures are down by 0.1%, while futures for the French CAC 40 and Germany's DAX are down by 0.4% and 0.1%, respectively. The previous day ended on a positive note after the European Central Bank made a widely expected interest rate cut. Investors are awaiting U.S. nonfarm payrolls data set to be released later today, with forecasts indicating a potential contraction in job numbers from the previous month. Additionally, trade tensions remain a focal point for global investors following a recent 90-minute conversation between Trump and Chinese President Xi Jinping, which was primarily centered on trade discussions.
