Spain’s financial index led gains in Europe’s biggest markets, rising 1.7%. Investors were also relieved that former Fed Governor Kevin Warsh was nominated to head the US central bank when Jerome Powell’s leadership term ended in May. Warsh’s prospects will come under scrutiny in the coming days, at a time when the White House has pushed for a rate cut.
“Warsh is a lawyer, but he does have some experience with central banks, so he kind of ticks the boxes in terms of credibility and provides a degree of continuity, from the old chairman to the new chairman,” said Daniel Murray, global head of discretionary portfolio management at EFG International.
“Historically, Warsh has not been very supportive of quantitative easing, so the initial reaction is one of a little more caution that he probably won’t be as forgiving.”
Now that the European Central Bank remains committed to monetary policy, more attention is focused on the US Fed’s prospects for interest rates.
Meanwhile, gains in Europe were in full swing. Swiss watchmaker Swatch also climbed 13.4% after saying sales grew 4.7% at constant exchange rates in the second half of last year. Shares of German sportswear maker Adidas rose 4% after it unveiled a share buyback worth 1 billion euros and reported record sales for 2025. French consultancy Alten rose 16.7% to post its strongest daily gain since October 2002, after the group reported a smaller-than-feared organic decline in 2025. Quarterly profits are widely expected to decline 3.9% year-over-year as companies face tariff headwinds and an adverse strengthening of the euro against the dollar.
The gains of some heavyweights in the luxury and technology sectors have disappointed markets this week. On Friday, shares of Signify, the world’s largest lamp maker, fell 17.1% to the lowest level since May after weaker-than-expected annual results.
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