- Bayer shares jump 11% after exceeding sales and profit expectations despite a 7.4% drop in adjusted profits.
- European markets open in the green as the U.S.-China tariff pause raises hopes of easing trade tensions.
- SoftBank’s Vision Fund reports a fiscal year loss, highlighting ongoing challenges in the tech investment sector.
Bayer’s shares surged by 11% after the German chemicals and pharmaceuticals giant reported stronger-than-expected first-quarter results. Despite a 7.4% decline in adjusted profits to 4.09 billion euros, the company managed to outperform analyst expectations of 3.75 billion euros.
The broader European markets opened higher, with the pan-European Stoxx 600 gaining 0.2% as investors welcomed a temporary 90-day pause in the U.S.-China tariff dispute. However, the outlook remains uncertain as markets await key economic data from the U.K.
European Markets Rise on U.S.-China Tariff Pause; Bayer Tops Earnings Forecasts
European stocks opened on a positive note on Tuesday, driven by optimism over a 90-day tariff pause between the U.S. and China. The pan-European Stoxx 600 rose by 0.2%, while Germany’s DAX and France’s CAC 40 both edged up 0.2%. Despite the gains, caution prevailed as investors braced for key economic data and corporate earnings.
Bayer led the gains in the European market, surging 11% after posting a robust earnings report that exceeded market expectations. The company reported 13.74 billion euros in first-quarter sales and 4.09 billion euros in adjusted profits, both higher than anticipated despite a year-on-year profit decline. Analysts praised Bayer’s mitigation strategies against tariff risks but remained cautious about ongoing legal liabilities.
Meanwhile, SoftBank’s Vision Fund reported a fiscal year loss, driven by slowing gains in its tech investment arm. This contrasts with Bayer’s upbeat report, reflecting the divergent fortunes of major conglomerates as they navigate economic uncertainty.
The mixed trading sentiment extended to Asia-Pacific markets overnight, with investors closely monitoring U.S. inflation data and the upcoming producer price index report. As global markets assess the implications of the tariff pause, European markets remain focused on upcoming earnings reports from major players like Tata Motors, Metro Bank, and Munich Re.
Bayer’s impressive earnings beat highlights its resilience amidst economic uncertainties, but ongoing legal risks and market volatility remain key concerns for investors.
“All in all, it was encouraging to see Bayer beat expectations and confirm its constant currency guidance, despite the uncertain tariff environment.” — Falko Friedrichs, Equity Analyst at Deutsche Bank.
