European markets mixed as Germany’s economy contracts, Unilever CEO steps down.
European markets hovered around both sides of the flatline on Tuesday, reflecting cautious market sentiment as investors eye U.S. tariff plans and upcoming earnings from artificial intelligence-darling Nvidia (NASDAQ: NVDA).
At 04:08 ET (09:08 GMT), the pan-European Stoxx 600 had ticked up by 0.1% to 554.06. The U.K.’s FTSE 100 had risen by 0.1%, while Germany’s DAX had fallen by 0.1% and the CAC 40 in France had dipped by 0.2%.
European markets were mixed at the start of the week as traders assessed the possibility that the U.S. will go ahead with sweeping reciprocal tariffs later this year. President Donald Trump reiterated his desire to follow through on the plan during a news conference with his French counterpart Emmanuel Macron. Quarterly figures from Nvidia, which could provide some insight into the outlook for recently-heavy AI spending, are also looming over sentiment.
Meanwhile, markets were gauging the results of Germany’s federal election. The conservative Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), secured the largest share of votes.
Their candidate, Friedrich Merz, is likely to replace Olaf Scholz as Germany’s chancellor, although uncertainty swirls around the make-up of a potential coalition government. Merz has vowed to move quickly to form a coalition, but gains by both the far-right Alternative for Germany (AfD) and far-left parties stand to complicate the matter.
Analysts have previously suggested that a concentration of control of Germany’s national parliament could support economic growth because it would help clear the path for some fiscal easing initiatives.
The result comes at a precarious time for Germany’s economy. A jump in competition from international rivals, elevated energy costs, high interest rates and broad economic uncertainty have dented activity in what has traditionally been the economic powerhouse of Europe.
Data on Tuesday showed that the economy shrank by 0.2% in the final quarter of 2024, confirming earlier estimates from the Federal Statistical Office. The contraction follows modest growth of 0.1% in the previous quarter and was attributed to a significant decline in exports and ongoing struggles in the manufacturing sector.
In individual stocks, Ben & Jerry’s owner Unilever (LON: ULVR) announced that CEO Hein Schumacher will step down after less than two years in the role. Finance chief Fernando Fernandez will take over at the helm of the consumer goods group starting March 1.
Schumacher, who took charge in July 2023 to oversee the company’s strategic overhaul, will remain with Unilever until May 31. London-listed shares in Unilever dropped in early dealmaking.
Shares in Denmark’s Novo Nordisk (CSE: NOVOb) advanced. Speaking with analysts on Monday, U.S. telehealth group Hims & Hers (NYSE: HIMS) announced that it may stop selling compounded versions of semaglutide, which had rivalled popular obesity drugs like Wegovy and Ozempic that have recently helped underpin Novo’s operations.
Elsewhere, crude oil prices climbed for a second consecutive day on Tuesday following new U.S. sanctions on Iran, raising concerns around potential supply disruptions.
By 03:29 ET, Brent crude futures were mostly unchanged at $74.33 per barrel, while U.S. West Texas Intermediate crude had risen by 0.2% to $70.81 per barrel.