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European Stocks Off Lows as Investors Digest GDP Data; Banks Down 2%; NatWest Slides 5%

Liverpool Street train station beneath the new skyline of skyscrapers in the City of London financial district on 14th February 2022 in London, United Kingdom.
Mike Kemp | In Pictures | Getty Images

This is CNBC's live blog covering European markets.

European stock markets came off session lows Friday as traders digested fresh economic data and more corporate earnings.

The pan-European Stoxx 600 index was up 0.5% in afternoon trading after dropping earlier in the session. Banks shed Thursday's optimism and fell 1.3%, while utilities were down 0.4%. Oil and gas led gains, up 1.9%.

The euro zone economy grew by 0.1% in the first quarter of the year, preliminary figures showed on Friday, even as Germany's GDP flatlined over the period. A Reuters poll of economists had forecast quarterly growth of 0.2%.

Elsewhere, banking sector nerves have been somewhat revived by U.S. regional bank First Republic, which is seeking a recovery strategy after its stock plunged on news it lost around 40% of its deposits in the first quarter.

On Friday, British bank NatWest results showed a 37.2% annual increase in income to £1.036 billion ($1.29 billion), while its net interest margin was up 7 basis points on the prior quarter to 3.27%. However, shares in the bank fell as much as 5%.

Mercedes-Benz reported a fall in year-on-year earnings but still beat forecasts. The company raised its sales outlook for vans and said car sales would come in on the high end of guidance.

U.S. stocks were slightly higher Friday as investors pore over results from some of the country's biggest companies, including Amazon and Intel.

In Asia-Pacific, markets closed higher after the Bank of Japan kept its monetary policy unchanged. It was expected in the first meeting chaired by new governor Kazuo Ueda.

Covestro CEO: Solid financials and debt levels under control

Markus Steilemann, CEO at Covestro, says the company can keep and maintain a strong balance sheet despite negative cashflow in the first quarter.

U.S. stocks open lower

The three major U.S. indexes opened Friday's session down.

The Dow slipped 0.3%, while the S&P 500 and Nasdaq Composite each shed 0.2%.

— Alex Harring

Financial stability concerns could be on the horizon in Europe, economist says

Ludovic Subran, chief economist of Allianz, says food inflation is still worryingly high in Europe and the European Central Bank will announce at least another two interest rate hikes.

Deposits are ‘something we are watching very closely’: Erste Group

Stefan Dörfler, chief financial officer of the Austrian lender Erste Group, discusses its first-quarter earnings.

Swiss central bank to review regulation after Credit Suisse collapse

Thomas Jordan, president of the Swiss National Bank (SNB), speaks during the bank's annual general meeting in Bern, Switzerland, on Friday, April 28, 2023.
Bloomberg | Bloomberg | Getty Images
Thomas Jordan, president of the Swiss National Bank (SNB), speaks during the bank's annual general meeting in Bern, Switzerland, on Friday, April 28, 2023.

The Swiss National Bank pledged to review banking regulations during its annual general meeting in Bern.

Set against a backdrop of protest over its action on climate change and its role in the emergency sale of Credit Suisse to Swiss rival UBS, Thomas Jordan, chairman of the governing board at the SNB, said banking regulation and supervision will have to be reviewed in light of recent events.

"This will require in-depth analysis ... quick fixes must be avoided," he said, according to a statement.

The central bank played a key role in brokering the rescue of Credit Suisse over the course of a chaotic weekend in March.

Read the full story here.

— Elliot Smith

Stocks on the move: Remy Cointreau down 10% as banks tumble

Shares of Remy Cointreau dropped more than 10% after the spirits group said it expected sales to "strongly decline" in the next two quarters due to high performance last year and weaker demand in the U.S., though forecast a rebound after that.

Its sales growth in the full year ending March 31 beat expectations.

Meanwhile banks including Caixabank, Unicredit, Commerzbank and NatWest fell as the overall sector dropped 2%, despite several banks — including Natwest — beating analyst forecasts in their quarterly results.

— Jenni Reid

European equities dip as euro zone GDP growth misses expectations

The pan-European Stoxx 600 index extended earlier losses, sliding to -0.4% as the euro zone GDP grew less than expected in the first quarter of the year.

The euro zone economy grew by 0.1% in the first three months of 2023, preliminary Eurostat figures showed, falling short of the 0.2% growth projected by a poll of Reuters economists.

Banks led losses, shedding 2.3% since the start of trade, while health care stocks led minor gains with a 0.5% uptick.

— Hannah Ward-Glenton

IMF’s Kammer: Further ECB tightening is required to defeat inflation

Alfred Kammer, director of the European department at the International Monetary Fund, says core inflation is persistently high and "there's nothing worse than pausing an inflation-fighting effort too early … because if you need to do it a second time, the costs to the economy are so much larger."

Deutsche Bank to buy stockbroker Numis for $511 million

Deutsche Bank announced it has agreed on an all-cash offer for British corporate broker and advisor Numis Corporation Plc, valuing the firm at around £410 million (£511 million).

The German lender, which reported solid first-quarter results on Thursday, said the deal would give it "deeper engagement with the corporate client segment in the UK."

Numis shares rocketed 67.65% higher in early trade.

Deutsche Bank shares were up 0.3%.

— Jenni Reid

We want to hold our margin levels, Mercedes-Benz CFO says

Harald Wilhelm, CFO of Mercedes-Benz, discusses its first-quarter earnings and explains the company's pricing strategy for electrical vehicles.

France GDP up 0.2% in first quarter

Customers sit at a cafe table in Paris.
- | Afp | Getty Images
Customers sit at a cafe table in Paris.

France's economy grew by 0.2% in the first quarter, national statistics showed.

Domestic demand weighed on growth, down 0.1 points, though that improved from a 0.4 point decline in the prior quarter. Household consumption held steady, gross fixed capital formation fell slightly and foreign trade increased.

Euro zone gross domestic product figures are due later in the morning.

— Jenni Reid

Europe markets set to open higher

European stock markets look set for a positive open on Friday.

The U.K.'s FTSE 100 was on course for a 20.7 point rise to 7,850.3, according to ig.com. France's CAC 40 was seen up 32 points to 7,505.8, Germany's DAX up 61.5 points to 15,859 and Italy's MIB up 152.5 points to 27,091.

— Jenni Reid

Bank of Japan maintains negative interest rates, makes no changes to yield curve control

The Bank of Japan left its interest rates unchanged in newly appointed Governor Kazuo Ueda's first policy meeting.

The decision was in line with economist expectations for no changes to the benchmark interest rate, which has been held at minus 0.1% since the central bank took rates below zero in 2016.

The Japanese yen weakened further to 134.6 against the U.S. dollar and the yield on the 10-year Japanese government bonds was at 0.460%.

Ueda has earlier this week emphasized inflation needs to be "quite strong and close to 2%" — the central bank's target — before making any adjustments to the yield curve control policy.

— Jihye Lee

CNBC Pro: This weight-loss drug maker's stock is up 20% this year — and Barclays sees it going higher

The pharma stock behind a popular weight-loss drug is up 137% since the treatment was approved by the U.S. Food and Drug Administration.

Barclays investment bank expects the stock to rise further as the market for obesity treatment drugs could be more than $100 billion, according to Barclays.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: Goldman Sachs and Morgan Stanley say these chip stocks have more upside — giving one nearly 50%

Chip stocks have rebounded this year after performing poorly in 2022.

The PHLX Semiconductor Sector Index is up nearly 17% in the year to date, making this sector one of the brightest spots in the market turmoil.

CNBC Pro takes a look at semiconductor stocks that the banks are giving further upside to.

CNBC Pro subscribers can read more here.

— Weizhen Tan

First Republic shares stabilize

Shares of beleaguered regional bank First Republic were climbing on Thursday, giving the stock a reprieve after two days of heavy selling.

The stock rose 71 cents, or about 12%, but is still trading below $7 per share.

First Republic's stock closed at $16 per share on Monday before the bank released its first quarter results, which showed that deposits shrank by about 40% in the first three months of the year.

First Republic and its advisors are trying convince other banks to buy some of its assets at above market rates to allow First Republic to reshape its balance sheet, CNBC reported Wednesday.

— Jesse Pound

U.S. economy grows at slower-than-expected pace in first quarter

The U.S. economy expanded by 1.1% in the first quarter, a much-slower-than-expected pace, the Commerce Department said. Economists had forecast expansion of 2%, per Dow Jones. The report showed stronger inflation with prices increasing 4%, compared with an estimate of 3.7%.

— Jeff Cox

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