European stock markets traded in tight ranges Tuesday, with investors fretting about global growth given renewed US tariffs under President Donald Trump.
At 03:05 ET (08:05 GMT), the DAX index in Germany slipped 0.2%, while the CAC 40 in France edged 0.2% higher and the FTSE 100 in the UK rose 0.2%.
US tariffs prompt uncertainty
Global stock markets started the new week on a positive tone, but President Trump’s fresh tariffs on aluminium and steel, combined with existing tariffs on Chinese imports, has fueled a note of caution.
Investors are growing increasingly wary of the escalating trade tensions, as they threaten to slow economic growth and disrupt supply chains across key industries.
The tariffs announced could trigger economic uncertainty, European Central Bank Vice President Luis de Guindos said on Monday, with Trump’s plan for 25% tariffs on all steel and aluminium imports into the United States representing another major trade escalation.
“Apart from the geopolitical risks, I think that the policy of the new American administration creates a situation of huge uncertainty,” said de Guindos in an interview with a Spanish broadcaster.
The ECB cut interest rates at the end of last month, its fifth reduction since June, and kept the door open to further policy easing given concerns over lacklustre economic growth.
There was some positive economic news Tuesday, as French unemployment unexpectedly declined at the end of 2024, with the jobless rate falling to 7.3% in the final three months of last year from 7.4% in the previous quarter.
BP’s earnings miss expectations
The quarterly corporate earnings season continued in full flow Tuesday, with solid results so far helping the main European indices record a strong start to the year.
European earnings growth is forecast at 7.9% in 2025, from 1% last year and after a 3.9% fall in 2023.
BP’s (NYSE: BP) fourth-quarter profit fell to $1.17 billion, marking the lowest earnings for the oil major in four years as weak margins dented its refining business.
UniCredit (BIT: CRDI) posted a fourth-quarter profit beat, with Italy’s second-largest lender raising shareholder returns amid market focus on the bank’s M&A overtures.
French luxury group Kering (EPA: PRTP) reported a 12% drop in fourth-quarter sales, dragged lower by its Italian brand Gucci, but flagged a slight improvement in major markets China and the United States.
Aker Solutions (OL: AKSOA) reported strong revenue growth and improved margins for 2024, with the Norwegian engineering firm closing the year with a solid order backlog and a growing tender pipeline.
Swiss pharmaceutical giant Novartis (SIX: NOVN) has agreed to acquire biopharma firm Anthos Therapeutics for up to $3.1 billion.
Crude rises on supply concerns
Oil prices rose Tuesday, adding to the previous session’s uptick, on more worries over potential supply disruptions, but gains were limited by worries that escalating trade tariffs could hit global economic growth.
By 03:05 ET, the US crude futures (WTI) gained 0.8% to $72.90 a barrel, while the Brent contract rose 0.9% to $76.52 a barrel.
Both contracts posted gains of nearly 2% in the prior session after three weekly losses in a row.
Concerns of further disruptions to global supplies were heightened following a Politico report on Monday that European countries plan to seize Russia’s shadow fleet.
Shipping of Russian oil to China and India, the world’s major crude oil importers, has been significantly disrupted by US sanctions.
