European stock markets dip slightly amid trade uncertainty; earnings reports remain the focus

Investing.com - European stocks edged lower on Tuesday as investors assess the new economic landscape following the implementation of U.S. President Donald Trump’s new global trade tariffs.

As of 03:05 AM Eastern Time (16:05 Beijing Time), Germany’s DAX index fell 0.1%, France’s CAC 40 declined 0.2%, and the UK’s FTSE 100 dropped 0.2%.

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New Tariff Framework

President Trump’s new global trade tariffs have taken effect at a 10% level, after a Supreme Court ruling overturned most of his previous tax measures, adding more uncertainty to the global trade landscape.

The 10% rate was communicated through the U.S. Customs and Border Protection’s messaging system. Media reports indicate that the White House is currently working to raise the rate to 15%, which is the final rate Trump announced over the weekend following the ruling.

Investors are concerned whether trade agreements negotiated before the Supreme Court decision are still valid. For example, an assessment by the European Union found that the new tariff policy would raise the duty on some of the bloc’s exports beyond what trade agreements permit.

Trump may address this topic later Tuesday during his traditional State of the Union address to Congress, but he has warned trading partners not to “play games” by withdrawing from recently reached trade agreements.

European Earnings Reports Continue

Back in Europe, at the start of this busy week, investors have more quarterly earnings to digest.

Standard Chartered (LON:STAN) reported a 16% increase in pre-tax profit for the full year, driven by strong performance in its global banking and wealth management divisions. The UK-based lender also announced a $1.5 billion share buyback plan, with annual dividends up 65% from the previous year.

Telefónica (BME:TEF) reported a net loss in Q4, which included €2.8 billion in restructuring costs that offset operational growth. The company is pushing forward with its portfolio restructuring and has exited several Latin American markets.

Fresenius Medical Care (ETR:FMEG) reported a significant increase in Q4 revenue, benefiting from accelerated cost savings and favorable reimbursement effects.

Croda International (LON:CRDA) reported growth in adjusted earnings for 2025, supported by steady growth in its consumer care and life sciences divisions.

European auto stocks also drew attention on Tuesday. According to data from the European Automobile Manufacturers Association (ACEA), new car sales in the region declined year-over-year for the first time since June last year.

EU new car registrations fell 3.9% in January, while the market share of pure electric vehicles increased from 14.9% a year earlier to 19.3%. Hybrid vehicles remain the most popular powertrain, accounting for 38.6% of registrations, while gasoline and diesel models continue to lose market share.

Crude Oil Prices Near Seven-Month Highs

Oil prices rose slightly on Tuesday, trading near seven-month highs ahead of a new round of U.S.-Iran nuclear talks later this week.

Brent crude futures increased 0.3% to $71.33 per barrel, while U.S. WTI crude futures rose 0.4% to $66.55 per barrel.

Both contracts are currently trading at levels near those seen in early August 2025.

Iran and the U.S. are scheduled to hold their third round of nuclear negotiations in Geneva on Thursday. As Washington seeks to end Iran’s nuclear program, concerns about the risk of military conflict are increasing.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.