Euronext has released its latest report, the Capital Markets Update, offering a data-driven overview of current trends in equity markets and investor sentiment since the beginning of 2025.

Impact of recent global developments on European equity markets

The beginning of 2025 has been a volatile period for issuers and investors as markets continue to adjust to ongoing geopolitical and macroeconomic developments.

Euronext Capital Markets Update

Euronext's report shows an increase in market volatility broadly consistent with historical patterns observed during periods of macroeconomic stress. The current environment appears to be driven by a combination of forced derisking and elevated macroeconomic uncertainty. While this phase may feel pronounced, historical precedent – including episodes such as the COVID-19 market response – suggests that such conditions tend to normalise once initial adjustments are absorbed.

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Key insights

• Volatility trends:  Equity markets are facing significant volatility, with the VIX averaging 31 last week (14-20 April) — well above the 5-year norm of 19 — after peaking at 52 in early April. This level, while below those of past crises (COVID-19: 82, Ukraine war: 36, inflation fears: 34), still reflects elevated stress. Historically, the VIX returned to normal within 1.5 to 8.5 months post-crisis. Current spikes are triggering forced selling, especially on large-cap stocks.

• Market impact of recent US tariffs: The latest tariff announcements have triggered a sharp increase in trading volumes across Euronext markets in early April, particularly impacting large-cap stocks, while activity in mid- and small-caps remained largely stable. The third week of April saw a return to more normal levels, reflecting a stabilising global market environment during a shortened trading week.

• Sector performance and market rotation: Since the announcement of new US trade tariffs, Euronext markets have shown selective resilience in April, with Real Estate and Consumer Staples standing out in positive territory despite global trade tensions. While some sectors—particularly Energy, Telecoms and Financials—faced pressure due to their exposure to global trade and interest rates, others such as Healthcare and Utilities demonstrated relative stability. Cyclical segments like Tech and Consumer Discretionary experienced only modest pullbacks. Encouragingly, European indices remained resilient last week, supported by strong corporate earnings and renewed optimism in Asian markets regarding trade prospects.

For more information, we invite you to download the report.  

Should you have any queries, please contact the Euronext team. 

Euronext Single Stock and CAC 40 Index Options off to a strong start in Q1 2025

Euronext’s financial derivatives markets continued to demonstrate robust growth in Q1 2025, particularly in Single Stock Options trading. Volumes rose to 22 million contracts, marking a 23% increase year to date, and building on the strong gains seen in 2024.

This sustained momentum was powered by strong performances across key markets -  Paris, Amsterdam, and Milan - each contributing to the dynamic and balanced growth of Euronext’s pan-European options offering. Euronext Paris led the way with a notable surge in volumes, while Euronext Amsterdam and Euronext Milan posted steady gains, confirming a renewed appetite for equity derivatives among market participants.

In addition, CAC 40 Index Options recorded exceptional growth in Q1 2025, with volumes up by 160.2%. This outstanding performance builds on sustained activity since mid-2024, notably during politically driven peaks in June and July. Growth was further supported by the successful launch of Daily Options on the CAC 40 Index in February 2024.

The analysis below provides a breakdown of activity and rankings per market, highlighting key drivers, sector contributions, and standout performers in Euronext's Single Stock Options volumes for Q1 2025. It also includes record activity in CAC 40 Index Options.

Overall activity overview

In Q1 2025, Single Stock Options volumes reached 22 million contracts, representing a 23% increase year to date. This growth continues the strong upward trend observed in 2024, which recorded an 19% increase compared to 2023.

This growth was largely driven by the Euronext Paris market, which saw a notable 22% increase in traded volumes in Q1 2025 compared to the same period last year. Euronext Amsterdam and Euronext Milan also contributed to the positive trend, with steady increases of 4%, respectively.

Over the last quarter, Euronext Paris accounted for 42% of the activity on Single Stock Options, highlighting its strong performance. Euronext Amsterdam maintained a solid 40% share, while Euronext Milan contributed with a stable 18%, reflecting a well-balanced distribution across the key markets.

Euronext Paris volumes and rankings

In 2024, trading activity in Paris was significantly stimulated by political events and market uncertainty, particularly between June and November. This upward trend continued into Q1 2025, with 8.7 million contracts traded.

The average daily volume increased from 107,100 before June 2024 to 125,300 between June and December 2024, reflecting a 17% rise. June and November notably exhibited significant trading volumes. 

This growth was supported by strong activity across key sectors such as banking, infrastructure, and energy. Notable contributors included STMicroelectronics, which saw a 127% year-on-year increase, followed by Renault (+96%), Stellantis (+81%), Orange (+75%), and Engie (+61%).

Euronext Amsterdam volumes and rankings

The Euronext Amsterdam market is showing encouraging signs of renewed activity, with a clear rebound in recent months. In particular, volumes increased by 38% between Q4 2024 and Q1 2025, returning to levels comparable to early 2024. This positive trend reflects improving market conditions and growing investor engagement.
 

Several key stocks contributed to the strong performance of the Amsterdam market in 2024, including Aegon, which posted an impressive 50% increase, and ASML Holding, up 18% over the year. 

Euronext Milan volumes and rankings

Euronext Milan recorded strong growth in Q1 2025, with Single Stock Options volumes rising by 58% compared to the previous quarter. Activity reached levels comparable to Q1 2024, highlighting renewed engagement in the Italian equity derivatives market. 

CAC 40 Index Options: record activity

Regarding Index Options, the CAC 40 Index Options recorded an outstanding performance in Q1 2025, with volumes surging by an impressive 160%.

Growth continued in March 2025, building on the strong dynamics observed in mid-2024, especially during the politically driven peaks of June and July 2024 and was further supported by the successful launch of Daily Options on the CAC 40 Index last February 2024.

April 2025

The rapidly evolving geopolitical landscape presents unprecedented challenges for Europe. 
In this context, all stakeholders, including policymakers, have a role to play. 
However, it is also incumbent upon us, as an industry, to take action. 

Euronext Securities is taking action 

At Euronext, we hold two strong beliefs: 

• first, this period offers a significant opportunity to simplify, expand, and make our markets more cost-effective, thereby creating growth opportunities for all. 

• Second, success stems from successful partnerships with you, our clients. 

Therefore, we aim to regularly share our insights on market trends and hot topics, featuring our experts to provide you with the latest updates on our strategic projects and explain the innovative solutions we are developing to meet your strategic needs. 

To contribute to our collective objectives, let us highlight three significant initiatives with tangible value for you that we are delivering together. 

Our initiatives

Firstly, together, we are implementing a common platform to support Central Securities Depositories (CSD) activity in Europe, beginning with the four CSDs we operate in Copenhagen, Milan, Oslo, and Porto. The objective is straightforward: to provide you with the best service in the long term by transitioning from fragmented, ageing systems to a future-proof European platform that benefits both our global and local clients. 

Second, we propose to manage more European markets through our European CSD model. We recently announced that the settlement of equity and exchange-traded fund (ETF) transactions on Euronext Amsterdam, Brussels, and Paris, will be centralised in Euronext Securities Milan by September 2026. This strategic move will offer increased cross-border trading opportunities, allowing you to navigate multiple markets with ease and enhancing liquidity. Operations will become more efficient, post-trade costs will be reduced, and adapting to regulatory changes will become more straightforward, such as the adoption of the T+1 settlement cycle by October 2027.  In doing so, we are offering a valid and innovative alternative for issuers and intermediaries through a truly European CSD model. 

Third, we are continuing to develop added-value services to help you focus on what is strategic for you - whether it is growing market share, entering new markets, or transforming your operations.  This includes expanding our data services catalogue and leveraging our recent acquisition of Acupay to boost our tax services offering. 

People often think of post-trade as the plumbing of financial markets. Some forget that the collective intelligence, hard work, and commitment of the “plumbers” who design and improve this infrastructure daily are essential to making these markets work. 

That is why I want to warmly thank you for the strong engagement you have shown so far in embarking with us on this ambitious journey. We look forward to shaping European markets for future generations together!

Author: Pierre Davoust, Head of Euronext Securities 
 

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