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LONDON – European stocks opened in mixed territory on Tuesday as traders reviewed the first executive orders that US President Donald Trump signed on Monday.
The pan-European Stoxx 600 open flat, while Germany DAX fell slightly after breaking a record high. While the FTSE 100 opened 0.05% higher, Italy FTSE MIB and CAC 40 they were both in negative territory at 8.15am London time.
Orsted shares sank 15% after the company unveiled a fourth-quarter profit of 12.1 billion Danish kroner ($1.7 billion) related to its U.S. offshore wind turbine projects. Meanwhile, European manufacturers Stellantis and BMW are moving lower on the threat of potential US tariffs.
Global investors will assess the potential impact of Trump’s second term after his inauguration as the 47th president of the United States on Monday. After the ceremony, Trump signed some of his first executive orders in front of an audience of 20,000 supporters at the Capital One Arena in Washington.
On the data front, private sector wages in the UK rose by 6% in the three months to November, compared to the previous year, the Office for National Statistics said on Tuesday. The agency also revealed that the wage numbers for November fell by 0.1% compared to October, indicating a weakened labor market. The two data indicators together give the Bank of England rates a mixed picture of the state of the economy.
In Davos, Charlie Nunn, Chief Executive of Lloyds Banking Group, told CNBC’s Squawk Box Europe that the lender expects three interest rate cuts in 2025 from the Bank of England, in line with the stock exchange market interest rates. Lloyds is one of the largest mortgage lenders in the United Kingdom
Trump also said Monday that 25% tariffs could be imposed against Mexico and Canada in 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
In other news, European market investors will be paying attention the World Economic Forum in DavosSwitzerland, this week. The annual event, which attracts heads of government and business leaders from around the world, continues on Tuesday.
While some skip Davos – the leaders of China, India and a number of key European leaders are absent this year – Trump will address participants via video link on Thursday.
On Tuesday, there are several main speeches, with Ursula von der Leyen, head of the European Commission, who will speak at 10:50 Davos time (9:50 London time). Shortly after, Ding Xuexiang, the vice president of China, will make a keynote speech at 11:20 am.
Follow CNBC’s WEF live blog here
German Chancellor Olaf Scholz will address the forum at 2 pm local time and Ukrainian President Volodymyr Zelenskyy will speak at 2:30 pm The forum will be a crucial platform for the president to present Ukraine’s case in the face of likely pressure of Trump to reach a ceasefire with Russia to end the war.
Later in the afternoon, Cyril Ramaphosa, the president of South Africa, will give a keynote at 3:45 pm Davos time.
Elsewhere, Austria’s Raiffeisen Bank International, the biggest western bank in Russia, said it would set aside funds after a Russian court ruled against it for 2 billion euros ($2.08).
There is no major earnings release in Europe on Tuesday. The data release includes the UK unemployment rate for November and the ZEW indicator of European economic sentiment data.
