Investing.com - European stock markets traded largely flat Tuesday as investors digested renewed US tariffs on metals as well as more corporate earnings.
At 06:05 ET (11:05 GMT), the DAX index in Germany gained 0.1%, while the CAC 40 in France traded largely unchanged and the FTSE 100 in the UK slipped 0.1%.
US tariffs prompt trade war fears
Global stock markets started the new week on a positive tone, but President Trump’s fresh tariffs on aluminum 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 European Union will respond to fresh tariffs from the Trump administration, European Commission President Ursula von der Leyen said Tuesday, raising the possibility of a significant trade war.
"Unjustified tariffs on the EU will not go unanswered -- they will trigger firm and proportionate countermeasures," von der Leyen said, adding that the 27 member states of the union will act to "safeguard its economic interests."
The eurozone economy stagnated last quarter, with gross domestic product in the 20 nations sharing the euro unchanged compared with the previous quarter, as two straight years of contraction in Germany weighed on the bloc as a whole.
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 lackluster 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) stck fell 0.3% after the energy giant’s 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. However, its shares fell 3% after a 50% rise over the past year.
Kering (EPA:PRTP) stock rose 1.3% after the French luxury group 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) stock rose 4% after the Norwegian engineering firm reported strong revenue growth and improved margins for 2024, closing the year with a solid order backlog and a growing tender pipeline.
Entain (LON:ENT) stock slumped 10% after the British gaming company said CEO Gavin Isaacs will step down immediately.
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 06:05 ET, the US crude futures (WTI) gained 1.2% to $73.18 a barrel, while the Brent contract rose 1.2% to $76.81 a barrel.
Both contracts posted gains of near 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.