European Markets End in Upswing
In the closing days of September 2025, European markets demonstrated a mix of positive and steady performances, influenced by anticipation of Federal Reserve rate cuts and hopes for a U.S.-Russia meeting.
The Euro Area saw a modest increase in employment, with the number of employed persons rising by 0.1% from the previous quarter in Q2 2025. This marked the Eurozone's weakest quarterly growth since Q4 2023, indicating a slower pace of economic recovery.
The major European markets closed on a positive note, with the exception of the U.K. market. Germany's DAX and France's CAC 40 gained 0.79% and 0.84%, respectively. Among other European markets, Austria, Belgium, Czech Republic, Finland, Greece, Ireland, Norway, Russia, Spain, and Sweden ended higher. Switzerland's SMI settled with a gain of 0.19%.
The pan-European Stoxx 600 gained 0.55%, buoyed by better-than-expected corporate earnings and revived optimism over interest rate moves. Europe, particularly Germany, was identified as a potential bright spot in global growth.
The U.S.-Russia meeting hopes added a layer of positive sentiment, although specific impacts on European markets from such diplomatic developments were not detailed in the available sources.
In the UK, the economy rebounded at a faster-than-expected pace in June, with gross domestic product growing 0.4%. Industrial production in the UK increased 0.7%, and the U.K.'s FTSE 100 closed 0.13% up. However, annual industrial output growth eased to 0.2% in June, and the visible trade deficit remained largely unchanged at GBP 22.16 billion.
Notable performances included Aviva in the U.K. market, which climbed about 2.5% after reporting a 22% jump in operating profit in the first half of 2025. Admiral Group in the U.K. market gained more than 6.5% due to a 67% surge in half-year pretax profit.
However, not all stocks fared well. Kering closed down by more than 2.5%, Edenred and Renault ended with modest losses, and Capgemini ended lower by about 1.2%.
EU-harmonized inflation held steady at 0.9% in July, while monthly inflation rose 0.3%. France's consumer price index rose 1% on a yearly basis in July, the same as in the previous month.
In the energy sector, National Grid agreed to sell its Grain LNG business to a consortium.
Despite inflationary pressures and trade uncertainties, investors were focusing on company fundamentals and stable economic data, which supported equities overall. Over the long term, European stocks have underperformed U.S. stocks but maintained steady returns.
In conclusion, European markets ended September 2025 on a positive note, albeit with mixed performances. The anticipation of Fed rate cuts and geopolitical goodwill played significant roles in market movements, although no sharp rallies or declines are explicitly documented in the provided materials.
Sports teams across Europe cheered the positive closing of their respective stock markets, hopeful for improved economic stability to maximize their earnings. The European energy sector, in particular, celebrated the sale of National Grid's Grain LNG business, anticipating potential investments in sports infrastructure.
