Update Equities: Markets remain resilient

Despite ongoing turmoil, equity markets are holding up well this year. US President Donald Trump's frequent appearances in the news, however, can cause market hesitation due to the unpredictability of his policy changes.
Nevertheless, stock markets remain resilient. European markets are performing strongly, while US markets have positive returns, but are less robust than in previous years. Emerging markets are, just like the US, trailing European markets.
Earnings season is now in full swing against a background of headlines about Trump's decrees, newcomer artificial-intelligence company DeepSeek, inflation and interest rate developments. Results have, on average, surpassed analyst expectations. This week, many companies have reported their earnings. McDonald's, for example, revealed its quarterly and annual results on Monday, showing sales recovery after last year’s E.coli outbreak. The impact remains limited to specific areas. Positive trends suggest McDonald's will regain historical growth rates or could surpass them by the second half of 2025.
Deutsche Boerse reported robust earnings and surprised investors with a new EUR 500 million share repurchase plan. The company remains on course to achieve its Horizon 2026 strategy goals. S&P Global and Ecolab also posted strong earnings, leading to record-high share prices. Investors reacted positively to S&P Global's optimistic outlook, while Ecolab's better-than-expected earnings and promising outlook garnered significant investor interest.
Unilever, Coca-Cola, Nestlé, and Ahold-Delhaize posted earnings that received mixed market reactions. Unilever and Ahold-Delhaize declined, while Coca-Cola and Nestlé rose to year highs. Nestlé surpassed sales expectations, providing a reassuring forecast. The Unilever decline was mainly due to a slow start in 2025, while Ahold-Delhaize's US market margins disappointed. Coca-Cola had strong results and gained market share from Pepsi.
Finally, the results of Dutch-listed companies Adyen and DSM-Firmenich were positively received. Adyen's encouraging performance boosted its share price by around 10%, while DSM-Firmenich's announcement of a share buyback program was met with investor enthusiasm.
Next week will be busy with more company earnings reports. Investors should also remain alert for surprises from Trump over Valentine’s weekend.
Joost Olde-Riekerink