European Stocks Mixed After Trump’s Fresh Tariffs, Kering, BP Earnings in Focus
European Stocks Mixed After Trump's Fresh Tariffs
European markets remained mostly flat on Tuesday morning, after a brief rally, as investors adjusted to the latest tariff announcements from U.S. President Donald Trump. The Stoxx 600 index and major European bourses, including London’s FTSE 100 and France’s CAC 40, reversed initial gains, reflecting market caution over the evolving trade policies from the U.S.
Highlights:
U.S. Tariffs: President Trump imposed 25% tariffs on steel and aluminium imports starting from March 4, 2025, marking a significant escalation in the ongoing trade tensions. This followed his earlier threat to introduce reciprocal tariffs on any country imposing taxes on U.S. imports.
Investor Focus: Traders are closely monitoring updates on U.S. inflation, with key reports like January’s Consumer Price Index (CPI) due Wednesday, followed by the Producer Price Index (PPI) on Thursday.
Mixed Asian Markets: Stock movements in Asia were mixed, reflecting investor uncertainty over the potential impact of the new tariffs, while U.S. stock futures showed slight declines ahead of Tuesday’s market opening.
Company Earnings in Focus:
Entain Shares Drop: Shares of Entain, a global gaming company, fell 11% following the resignation of its CEO Gavin Isaacs. The company has appointed Stella David, the non-executive chair, to lead the firm on an interim basis.
BP Profit Decline: British oil giant BP reported a sharp drop in fourth-quarter profits, posting a 48% decline to $1.169 billion, attributed to weaker refining margins and seasonal impacts. BP also announced a $1.75 billion share buyback and a strategic reset.
Kering Reports Decline in Revenues: Kering, the French luxury goods company behind brands like Gucci, Bottega Veneta, and Balenciaga, reported a 12% drop in fourth-quarter sales to €4.39 billion, though its results exceeded analysts’ forecasts. The company is facing challenges from lower demand for the Gucci label, which led to a full-year sales decline of 12%.
Market Outlook:
The European stock market continues to remain volatile as Trump’s tariffs and earnings reports from major companies like BP and Kering weigh on investor sentiment. Traders are awaiting further details on trade policies and economic data to gauge the outlook for global markets in the coming days.