European markets set for a negative open as tariff uncertainty weighs on sentiment

European markets set for a negative open as tariff uncertainty weighs on sentiment


Heineken revenue beats estimates but beer sales wane

Beers on display at Winn-Dixie grocery store in Miami, Florida.

Jeff Greenberg | Universal Images Group | Getty Images

Dutch brewing giant Heineken posted a 4.9% year-on-year decline in first-quarter revenue to 7.78 billion euros ($8.85 billion) as beer sales fell 2.1%.

Organic net revenue before exceptional items was more resilient, up 0.9%, above the 0.6% decline predicted in a company-compiled consensus forecast.

CEO and Chairman Dolf van den Brink said overall weaker beer sales had been expected, and that premium brands expanded 1.8%.

The company reaffirmed its full-year outlook for organical operating profit growth of 4% to 8%.

“We anticipate ongoing macroeconomic volatility that may impact our consumers, including weak sentiment, global inflationary pressures, and currency devaluations in relation to a stronger Euro,” it said in a statement.

Stock Chart IconStock chart icon

hide content

Heineken share price.

“Additionally, there are broader uncertainties, including recent tariff adjustments and potential increases, as we go forward. To navigate this fluctuating environment, we remain agile in our allocation of capital and resources.”

While the beer sector will be hit by the expected global pullback in economic growth and consumer confidence as well as business uncertainty related to tariffs, analysts say it may be more protected than other industries given its highly localized nature.

— Jenni Reid

UK inflation slows to cooler-than-expected 2.6%

General view of the City of London skyline, the capital’s financial district.

Sopa Images | Lightrocket | Getty Images

The U.K.’s annual inflation rate fell to 2.6% in March, coming in below analyst expectations, according to data released by the Office for National Statistics (ONS) on Wednesday.

Economists polled by Reuters had anticipated the consumer price index would hit 2.7% in the twelve months to March.

The rate of price rises in Britain hit 2.8% in February, after rising sharply to 3% in January.

Read the full story here.

— Holly Ellyatt

ASML posts lower-than-expected net bookings in first quarter

Dutch semiconductor equipment firm ASML on Wednesday missed on net bookings expectations, suggesting a potential slowdown in demand for its critical chipmaking machines.

ASML reported net bookings of 3.94 billion euros ($4.47 billion) for the first quarter, versus a Reuters reported forecast of 4.89 billion euros.

Global chip stocks have been fragile over the last two weeks amid worries about how U.S. President Donald Trump’s tariff plans will affect the semiconductor supply chain.

Read the full story here.

— Ryan Browne

China’s first-quarter GDP tops estimates at 5.4% as growth momentum continues amid tariff worries

China’s economy expanded by a better-than-expected 5.4% in the first quarter, maintaining a strong momentum, even as U.S. tariff threats have prompted major investment banks to slash the country’s annual growth outlook.

The first-quarter GDP topped Reuters’ poll expectations for a 5.1% growth year on year, building on a recovery that began in late 2024, thanks to a broad policy stimulus push.

Retail sales in March rose by 5.9% year on year, sharply beating analysts’ estimates for a 4.2% growth. Industrial output expanded by 7.7% from a year earlier, versus median estimates of 5.8%.

Read the full story here.

—Anniek Bao

Asia chip stocks fall after Nvidia flags $5.5 billion costs in exporting to China

Gold hits another record high amid tariff uncertainty

Gold prices climbed to another fresh all-time high amid tariff uncertainties, with spot gold rising to 3,261.62 per ounce, according to LSEG data.

Gold futures on the U.S. Commodity Exchange were up 0.63% at $3,261.6 per ounce.

“We believe risk-off purchases for gold are yet to pick up. Increasing downside risks for equity markets will see institutional investors increasing allocation to gold,” ANZ’s analysts wrote in a research note published Wednesday. The investment bank sees gold prices going towards $3,400 per ounce.

— Lee Ying Shan

European markets: Here are the opening calls

European markets are expected to open in negative territory Wednesday.

The U.K.’s FTSE 100 index is expected to open 33 points lower at 8,217, Germany’s DAX down 53 points at 21,174, France’s CAC 53 points lower at 7,279 and Italy’s FTSE MIB 168 points lower at 34,814, according to data from IG.

U.K. inflation data and ASML and Heineken’s earnings are in focus for regional investors.

— Holly Ellyatt



Source

Banks say Trump’s ‘big beautiful bill’ could boost the U.S. economy – despite deficit concerns
World

Banks say Trump’s ‘big beautiful bill’ could boost the U.S. economy – despite deficit concerns

The U.S. Capitol in Washington, D.C. Bloomberg | Bloomberg | Getty Images U.S. President Donald Trump’s “big, beautiful bill” — or officially, the One Big Beautiful Bill Act — is a controversial piece of legislation, but some banks are in favor of it, saying it’s the shot in the arm the economy needs. It was advanced […]

Read More
Tesla shares tumble after Trump says DOGE should look at Elon Musk’s subsidies
World

Tesla shares tumble after Trump says DOGE should look at Elon Musk’s subsidies

Elon Musk speaks with U.S. President-elect Donald Trump as they watch the launch of the sixth test flight of the SpaceX Starship rocket on November 19, 2024 in Brownsville, Texas. Brandon Bell | Getty Images News | Getty Images Shares of Tesla were under pressure on Tuesday after President Donald Trump said in a late […]

Read More
Euro rises after euro zone inflation hits ECB’s 2% target
World

Euro rises after euro zone inflation hits ECB’s 2% target

European government borrowing costs fall Yields on European government bonds moved lower in the wake of the latest euro zone inflation print, which showed inflation hit the ECB’s 2% target in June. The yield on the German 10-year bund — seen as a benchmark for the euro zone — was 4 basis points lower by […]

Read More