European Markets Decline Amid U.S. Tariff Concerns

European stock markets traded lower on Thursday following U.S. President Donald Trump’s announcement of 25% tariffs on imports from the European Union.

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

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

Trump, speaking during his first Cabinet meeting on Wednesday, confirmed that:

• Duties on Canada and Mexico will take effect on April 2.
• A 25% tariff on EU goods will be part of his broader trade war strategy.

Key Economic Data Releases in Focus

Investors are also closely monitoring economic data from Europe, including:

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

These reports could offer further insights into the region’s economic outlook amid heightened trade tensions.

Rolls-Royce Surpasses Expectations with Strong Earnings

Rolls-Royce (OTC:RYCEY) delivered stronger-than-expected 2024 results:

• Revenue surged 16% to £17.8 billion.
• Operating profit hit £2.5 billion, exceeding forecasts.
• Free cash flow reached £2.4 billion, supported by a 23% increase in Civil Aerospace revenue.

Shares soared over 15% in early trading as the company upgraded its 2025 financial outlook, forecasting:

• Operating profit and free cash flow 8% above market consensus.
• Achievement of key financial targets ahead of schedule (per Morgan Stanley analysts).

Eni SpA’s Q4 Earnings Disappoint

Italian energy giant Eni SpA (BIT:ENI) fell short of expectations in Q4, reporting:

• Adjusted EBIT of €1.69 billion, below estimates.
• Net income of €892 million, missing consensus forecasts.

The weaker performance was primarily due to:

• Plenitude and Enilive businesses contributing only €136 million, well below the expected €220 million.
• Challenges in navigating market uncertainties and divisional underperformance.