European Markets Trade Cautiously Amid U.S. Tariff Concerns

European stock markets fluctuated within tight ranges on Tuesday, as investors weighed the impact of U.S. tariffs on global growth and corporate earnings.

• DAX (Germany): -0.2%
• CAC 40 (France): +0.2%
• FTSE 100 (UK): +0.2%

Key Market Drivers:

1. U.S. Tariffs Raise Uncertainty
   • Trump’s 25% tariffs on steel and aluminum raise fears of a trade war.
   • Investors cautious about supply chain disruptions and slowing economic growth.
   • ECB Vice President Luis de Guindos warns of potential economic instability.
2. French Unemployment Falls
   • Jobless rate dropped to 7.3% in Q4 2024 from 7.4% in Q3.
   • Unexpected improvement offers some optimism for the European economy.

Earnings Highlights:

• BP (NYSE:BP)
  • Q4 profit: $1.17B (lowest in four years).
  • Weak refining margins weighed on earnings.
• UniCredit (BIT:CRDI)
  • Q4 profit beat expectations.
  • Increased shareholder returns amid M&A focus.
• Kering (EPA:PRTP)
  • Q4 sales down 12%, led by weakness in Gucci.
  • China & U.S. markets show slight improvement.
• Aker Solutions (OL:AKSOA)
  • Strong revenue growth and improved margins.
  • Solid order backlog & expanding tender pipeline.
• Novartis (SIX:NOVN)
  • Agreed to acquire Anthos Therapeutics for $3.1 billion.

Market Outlook:

• Global markets remain cautious, balancing tariff risks and economic indicators.
• Earnings growth projections for 2025 remain strong (7.9% vs. 1% in 2024).
• Focus on upcoming economic data and central bank policy signals.