European Markets Decline as Trump Confirms Tariffs on EU Imports

European stocks traded lower on Thursday as markets reacted to U.S. President Donald Trump’s announcement of 25% tariffs on European Union imports, escalating trade tensions between the two economies.

Market Performance

At 03:15 ET (08:15 GMT):

• Germany’s DAX fell 1%
• France’s CAC 40 slipped 0.3%
• UK’s FTSE 100 remained unchanged

Investors are closely monitoring key economic data releases from the eurozone, including:

• Spain’s inflation rate
• Italy’s business and consumer confidence figures
• Eurozone economic sentiment indicators

These reports will provide insight into the region’s economic resilience amid rising geopolitical and trade risks.

Rolls-Royce Surges on Strong Earnings

Rolls-Royce (OTC: RYCEY) reported a 16% revenue increase to £17.8 billion in 2024, significantly beating expectations. The company’s operating profit hit £2.5 billion, while free cash flow surged to £2.4 billion, driven by a 23% jump in Civil Aerospace revenue.

Following the strong earnings, Rolls-Royce raised its 2025 financial forecasts, projecting operating profit and free cash flow 8% above market expectations. Shares in the company surged over 15% in early trading, with analysts noting that Rolls-Royce is on track to achieve its financial targets ahead of schedule.