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LONDON – European stocks opened in mixed territory on Tuesday as traders reviewed the first executive orders signed by US President Donald Trump on Monday.
Pan-European Stoxx 600 opened flat, while Germany’s DAX it dropped slightly after the record was reached. In the meantime FTSE 100 Italy opened 0.05% higher FTSE MIB and CAC 40 both were in negative territory at 8.15am London time.
Orsted shares sank 15% after the company disclosed a fourth-quarter profit of 12.1 billion Danish kroner ($1.7 billion) related to its US offshore wind turbine projects. Meanwhile, European carmakers Stellantis and BMW slumped under the threat of potential US tariffs.
Global investors will assess the potential impact of Trump’s second term after he takes office as the 47th US president on Monday. After the event, Trump signed some of his first executive orders Capital One Arena in Washington in front of 20,000 people.
In terms of data, UK private sector wages rose by 6% in the three months to November compared with a year earlier, the Office for National Statistics said on Tuesday. The agency also revealed that payrolls for November fell by 0.1% compared to October, indicating that the labor market is weakening. Both data indicators together give the Bank of England’s rate setters a mixed picture of the state of the economy.
In Davos, Lloyds Banking Group CEO Charlie Nunn told CNBC’s Squawk Box Europe that the lender expects three interest rate cuts from the Bank of England in 2025, in line with the interest rate swap market. Lloyds is one of the UK’s largest mortgage lenders
Trump also said on Monday They may charge 25% tariffs on Mexico and Canada as soon as early February.
Swiss police patrol outside the Congress Center ahead of the World Economic Forum in Davos, Switzerland, on January 19, 2025.
Yves Herman | Reuters
Otherwise, European market investors will be on the lookout Davos World Economic ForumSwitzerland, this week. The annual event, which attracts heads of government and business leaders from around the world, kicks up a gear on Tuesday.
While some favor Davos – Some top leaders from China, India and Europe are absent this year – Trump is scheduled to address participants via video link on Thursday.
On Tuesday, there will be a series of keynote speeches, with European Commission President Ursula von der Leyen speaking at 10:50 Davos time (9:50 London time). Shortly thereafter, Chinese Vice Premier Ding Xuexiang will give a speech at 11:20 am.
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German Chancellor Olaf Scholz will speak at the forum at 14:00 local time and Ukrainian President Volodymyr Zelenskyy will speak at 14:30. The forum will be a crucial platform for the president to present his case for Ukraine, ahead of possible pressure from Trump for a ceasefire. Russia to end the war.
In the afternoon, Cyril Ramaphosa, the President of South Africa, will give a speech at 15:45 Davos time.
Elsewhere, Austria’s Raiffeisen Bank International, Russia’s biggest Western bank, said it will deploy funds after a Russian court ruled against it for 2 billion euros ($2.08).
No major earnings in Europe on Tuesday. The data releases are the UK unemployment rate for November and the ZEW indicator of European economic sentiment data.
