LONDON – European stocks opened mixed on Tuesday as traders reviewed the first batch of executive orders signed by incoming U.S. President Donald Trump on Monday.
Pan-European Stoke 600 Open flat, Germany German DAX Index It hit a record high before falling slightly. Although FTSE 100 Italian stocks open 0.05% higher FTSE MIB and CAC 40 Both were in negative territory at 8.15am London time.
Orsted shares fell 15% after the company reported a 12.1 billion Danish kroner ($1.7 billion) loss in the fourth quarter related to its U.S. offshore wind turbine projects. Meanwhile, European automakers Stellantis and BMW were lower on the threat of potential U.S. tariffs.
Global investors will assess the potential impact of Trump’s second term as the 47th president of the United States on Monday. After the ceremony, Trump signed his first executive orders in front of 20,000 supporters at Capital One Arena in Washington.
In terms of data, UK private sector wages rose 6% in the three months to November compared with last year, the Office for National Statistics said on Tuesday. The agency also revealed that November employment data fell 0.1% from October, indicating a weakening labor market. Together, the two data indicators give Bank of England rate setters a mixed view on the state of the economy.
In Davos, Lloyds Banking Group Chief Executive Charlie Nunn told CNBC’s Squawk Box Europe that the bank expects three rate cuts from the Bank of England in 2025, in line with what is happening in the interest rate swap market. Lloyds Bank is one of the UK’s largest mortgage lenders
Trump also said on Monday A 25% tariff may be imposed on Mexico and Canada as early as early February.
On January 19, 2025, on the eve of the World Economic Forum in Davos, Switzerland, Swiss police patrolled outside the conference center.
Yves Herman | Reuters
In other news, investors in the European market will pay close attention Davos World Economic ForumSwitzerland, this week. The annual event, which attracts heads of government and business leaders from around the world, is in full swing on Tuesday.
While some people skip Davos – Leaders of China, India and some key European leaders are absent this year — Trump is scheduled to address attendees via video link on Thursday.
There will be a number of keynote speeches on Tuesday, with European Commission President Ursula von der Leyen speaking at 10:50am Davos time (9:50am London time). Soon after, Chinese Vice Premier Ding Xuexiang will deliver a keynote speech at 11:20 a.m.
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German Chancellor Olaf Scholz will speak at the forum at 2 pm local time, and Ukrainian President Volodymyr Zelensky will speak at 2:30 pm. An important platform for briefing on the situation in Ukraine ahead of possible pressure for a ceasefire with the country.
Later in the afternoon, South African President Cyril Ramaphosa will deliver a keynote speech at 3:45 pm Davos time.
On the other hand, Austria’s Raiffeisen International Bank, Russia’s largest Western bank, said it would set aside funds after a Russian court ruled against it of 2 billion euros ($2.08).
There are no major earnings releases in Europe on Tuesday. The data released include the UK unemployment rate in November and the ZEW indicator of European economic sentiment.
