LONDON — European stocks opened in mixed territory on Tuesday, as traders reviewed the first executive orders that newly inaugurated U.S. President Donald Trump signed on Monday.
The pan-European Stoxx 600 opened flat, while Germany’s DAX fell slightly after hitting a record high. While the FTSE 100 opened 0.05% higher, the Italy’s FTSE MIB and CAC 40 were both in negative territory at 8.15 a.m. London time.
Orsted shares sunk by 15% after the company unveiled a fourth-quarter 12.1 billion Danish Krone ($1.7 billion) hit linked to its U.S. offshore wind turbine projects. Meanwhile, European automakers Stellantis and BMW moved lower on the threat of potential U.S. tariffs.
Global investors will be assessing the potential impact of Trump’s second term in office following his inauguration as the 47th president of the U.S. on Monday. After the ceremony, Trump signed some of his first executive orders before an audience of 20,000 supporters at the Capital One Arena in Washington.
On the data front, private sector wages in the U.K. rose 6% in the three months to November, compared to the previous year, the Office for National Statistics said Tuesday. The agency also revealed that November payroll figures fell by 0.1% compared to October, pointing to a weakening labor market. The two data indicators together give the Bank of England’s rate-setters a mixed picture of the state of the economy.
In Davos, Lloyds Banking Group Chief Executive Charlie Nunn told CNBC’s Squawk Box Europe that the lender expects three cuts to interest rates in 2025 from the Bank of England, in line with the interest rate swaps market. Lloyds is one of the largest mortgage lenders in the U.K.
Trump also said Monday that tariffs of 25% could be levied against Mexico and Canada as soon as early February.
Swiss police patrol outside the Congress Center ahead of the World Economic Forum in Davos, Switzerland, on Jan. 19, 2025.
Yves Herman | Reuters
In other news, European market investors will be keeping an eye on the World Economic Forum in Davos, Switzerland, this week. The annual event, which attracts heads of government and business leaders from around the world, steps up a gear on Tuesday.
While some are skipping Davos — the leaders of China, India and a number of key European leaders are absent this year — Trump is due to address participants via videolink on Thursday.
On Tuesday, there are a number of keynote speeches, with Ursula von der Leyen, head of the European Commission, set to speak at 10:50 a.m. Davos time (9:50 a.m. London time). Shortly after, Ding Xuexiang, the vice premier of China, will give a keynote speech at 11:20 a.m.
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German Chancellor Olaf Scholz will address the forum at 2 p.m. local time and Ukrainian President Volodymyr Zelenskyy will speak at 2:30 p.m. The forum will be a crucial platform for the president to present Ukraine’s case ahead of likely pressure from 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 p.m. Davos time.
Elsewhere, Austria’s Raiffeisen Bank International, the biggest Western bank in Russia, said it will set aside funds after a Russian court made a 2 billion euros ($2.08) ruling against it.
There are no major earnings releases due in Europe Tuesday. Data releases include the U.K. unemployment rate for November and the ZEW indicator of European economic sentiment data.