Stock markets saw mostly positive movement on Wednesday, as investors braced for key U.S. economic indicators and corporate earnings reports that could shed light on the health of the world’s largest economy—particularly in the context of renewed tariff tensions under Donald Trump’s trade agenda.

All eyes are on upcoming data releases concerning U.S. inflation and GDP growth, due later today. Tech giants Microsoft and Meta (the parent company of Facebook and Instagram) are also set to release their quarterly earnings, which analysts believe could heavily sway market sentiment.

“These are weighty issues for investors—between recession fears and company results, it’s a volatile mix,” said Kathleen Brooks, Research Director at XTB. “Market moods are shifting quickly, and today’s data could swing the pendulum either way.”

European markets opened with optimism, helped by stronger-than-expected growth data from the eurozone. Both Paris and Frankfurt rose by 0.6%, boosted by signs that the French and German economies are picking up pace in early 2025.

However, the auto sector remained under pressure. Shares in German carmakers Volkswagen and Mercedes-Benz slipped after both firms reported significant drops in Q1 profits. Mercedes-Benz and Stellantis have now withdrawn their annual earnings forecasts, citing deep uncertainty tied to the U.S. administration’s 25% tariff on imported vehicles—though President Trump has recently hinted at possible softening.

London's FTSE 100 posted more modest gains of 0.2%, weighed down by losses in oil and mining companies amid weaker demand signals from China.

Fresh data out of China showed its manufacturing activity contracting at the fastest pace since July 2023—evidence that the escalating trade war with the U.S. is starting to bite. Chinese exports had surged in March, as companies rushed to beat incoming tariffs, but that momentum appears to be reversing fast.

“Tariffs are hurting both sides,” said Lynn Song, chief economist for Greater China at ING. “This PMI data is the clearest sign yet of a negative shock to China’s manufacturing sector.”

While Hong Kong stocks ended the day higher, Shanghai’s main index slipped by 0.2%.

Japan’s Nikkei 225 also gained 0.6%, lifted by a 7.1% jump in Sony’s share price following reports that the tech giant is considering spinning off its semiconductor division—a move investors believe could unlock significant value.

Global stocks have gradually recovered some of their early-April losses, as signs of diplomatic dialogue between the U.S. and key trade partners emerge. Washington has reported progress in talks with India, South Korea, and Japan. U.S. Commerce Secretary Howard Lutnick also said a deal was reached with an undisclosed country.

Oil prices continued to drop, driven by expectations of higher OPEC+ output and fears that the trade war could weaken global economic growth and energy demand. West Texas Intermediate fell to $59.84 a barrel, while Brent Crude dropped to $62.71.

By WafricNews Business Desk | April 30, 2025