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

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.

“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

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

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.

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— Ryan Browne

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

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 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