European stock markets remained largely stable on May 6, 2025, as investors awaited the U.S. Federal Reserve’s policy decision and assessed quarterly earnings. Uncertainty around potential tariff shifts between the United States and China, along with President Trump’s latest tariff announcement, added caution to the markets. The upcoming release of purchasing managers’ index (PMI) data across major European economies is also expected to influence trading sentiment.
European stock markets held firm on May 6 as investors balanced a wave of corporate earnings reports with anticipation over the U.S. Federal Reserve’s upcoming monetary policy decision and fresh geopolitical developments involving trade tariffs.
The U.S. Federal Reserve, the central banking system of the United States responsible for setting monetary policy, is set to announce its interest rate decision on May 8. While rates are expected to remain unchanged, markets are closely watching for commentary on the economic impact of recent tariff announcements by U.S. President Donald Trump. Over the weekend, Trump declared a 100% tariff on all foreign-made films, raising concerns about escalating trade tensions, particularly with China.
Last week, China stated it was reviewing a proposal from the U.S. to engage in new talks aimed at resolving tariff disputes. However, a lack of clear agreements has kept global investors cautious.
The uncertainty around trade policy coincides with the release of April’s purchasing managers’ index (PMI) data for France, Germany, the UK, and the euro zone. These figures are expected to offer insight into economic health and business confidence across key European markets.
On the corporate front, Denmark-based wind turbine manufacturer Vestas Wind Systems saw its stock rise nearly 5% following an unexpected operating profit report. The company’s strong performance stood out in an otherwise muted market session.
While overall movement in European shares remained modest, analysts note that the current pause reflects a wait-and-see approach as investors seek clarity on global economic direction.
