American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Europe markets open: stocks rise; EasyJet cites strike costs

by admin July 17, 2025
July 17, 2025
Europe markets open: stocks rise; EasyJet cites strike costs

European stock markets are set to open higher on Thursday, with positive momentum fueled by a strong earnings report and share buyback announcement from pharmaceutical giant Novartis.

This upbeat corporate news appears to be outweighing lingering concerns about US trade policy and providing a positive start for regional bourses.

Futures data from IG suggests a positive open across the continent: London’s FTSE 100 is seen opening 0.4% higher, while both France’s CAC 40 and Germany’s DAX are expected to rise by 0.5%.

Italy’s FTSE MIB is projected to see an even stronger start, up 0.9%.

This follows a mixed session in Asia-Pacific markets overnight, where most indices fell as investors assessed another month of declining Japanese exports.

Meanwhile, US stock futures ticked lower after a winning day for US markets. That rally was partly driven by President Donald Trump denying that he was planning to fire Jerome Powell from his position as Federal Reserve chairman, a move that helped to soothe some investor nerves.

Novartis delivers: profit beat, guidance lift, and a $10 billion buyback

A major catalyst for European markets this morning is a stellar earnings report from Swiss pharmaceutical giant Novartis.

The company beat profit expectations for the second quarter and announced the start of a massive $10 billion share buyback program.

Novartis’s net income for the second quarter of 2025 grew by an impressive 26% (excluding currency fluctuations) to $4.02 billion.

This figure comfortably surpassed the $3.72 billion that analysts had expected, according to FactSet. Bolstered by this strong performance, Novartis also raised its full-year guidance for core operating income from its previously guided “low double-digit” growth to a more optimistic “low teens.”

The company announced its plan to return $10 billion to investors through a share buyback program, which is expected to be completed by 2027.

“Our robust balance sheet and confidence in our mid and long-term growth enable us to initiate an up-to USD 10 billion share buyback as part of our commitment to balanced capital allocation,” said Vas Narasimhan, CEO of Novartis.

Despite ongoing patent litigation concerning its blockbuster heart medication Entresto—whose sales rose 24% to $2.36 billion—the company’s confident outlook has been well-received. Novartis stock is up 7.2% year-to-date.

EasyJet navigates headwinds: strikes and fuel costs weigh on profit

In the airline sector, EasyJet Plc reported that higher fuel costs and persistent air traffic control strikes have weighed on its profit.

The UK budget carrier stated on Thursday that disruptions from industrial action by air traffic controllers in France have cost the airline approximately £15 million, while rising fuel expenses have amounted to an additional £10 million hit.

Despite this combined £25 million negative impact, the airline still expects to see good year-on-year profit growth. EasyJet is “extremely unhappy” with the French ATC strikes that created “unexpected and significant costs” for carriers, Chief Executive Officer Kenton Jarvis said in a statement.

The company predicted that its capacity, measured by available seat kilometers, will grow by about 9% this year. However, this growth is expected to slow, with an advance of about 7% in the fiscal second half compared to the 12% gain seen in the first half.

The timing of Easter falling in April helped to lift the airline’s third-quarter results, which saw a pretax profit of £286 million. EasyJet also noted that overall demand remains strong for its network, though the ongoing conflict in the Middle East has caused a short-term dampening in demand for some destinations around the region.

As the first major European airline to report results for the quarter, EasyJet’s performance will be closely watched, with Ryanair Holdings Plc and Wizz Air Holdings Plc set to report next week.

The lingering shadow of US Tariffs

Despite the positive open, European markets have been on tenterhooks since US President Donald Trump announced last weekend that he would impose a 30% tariff on goods imported from the EU, starting August 1.

The EU has stated it hopes to strike a trade deal before that deadline, but the threat continues to cast a shadow over the market.

The post Europe markets open: stocks rise; EasyJet cites strike costs appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Russia’s wheat harvest halves amid slow pace and low yields
next post
Novartis lifts full-year profit forecast, announces $10 billion share buyback

Related Posts

Dow tumbles 475 points, S&P 500 suffers worst...

April 17, 2024

How to play SMCI stock after disappointing Q3...

May 1, 2025

Bank of America picks 5 stocks with post...

August 3, 2025

Viral AI crypto iDEGEN skyrockets 4731% amid dynamic...

December 12, 2024

CoreWeave stock price analysis: is it the next...

May 19, 2025

Trump wants Apple to shift iPhone production from...

May 16, 2025

Is natural gas a ‘buy’ as Microsoft say...

March 12, 2025

Mortgage rates plunge to the lowest level in...

August 6, 2024

Trump’s tariff threats could drive a wave of...

November 25, 2024

Ring home security customers will get refunds over...

April 27, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • FBI raid on John Bolton’s home in Washington linked to classified documents

      August 25, 2025
    • Argentine senate deals blow to Milei’s austerity agenda with university budget boost

      August 25, 2025
    • Jackson Hole Symposium: what Powell said about economic effects of Trump’s tariffs

      August 25, 2025
    • At Jackson Hole, Fed Chair Powell signals possible cuts while warning of uncertainty

      August 25, 2025
    • Trump threatens to fire Fed Governor Lisa Cook amid mortgage fraud allegations

      August 25, 2025

    Categories

    • Business (3,763)
    • Investing (2,783)
    • Latest News (2,048)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved