news

European markets close lower as investors monitor Russia tensions

A stock broker looks at his screens in front of the share price index DAX graph at the stock exchange in Frankfurt, Germany, March 16, 2023. 
Kai Pfaffenbach | Reuters

This was CNBC's live blog covering European markets.

European markets fell on Tuesday as investors around the world monitored a spike in geopolitical tensions centered on Russia.

The pan-European Stoxx 600 index closed down 0.45% at its lowest level for more than three months. Most sectors pulled back, with bank stocks falling 1.42% and travel down 1%, though health care managed a 0.57% gain.

Global markets saw a shift into safe havens as events in Russia sparked concern around the world. The Kremlin on Tuesday said it had expanded the circumstances under which it will consider nuclear retaliation. Meanwhile, its defense ministry said Ukraine had already deployed six contentious U.S.-made long-range ballistic missiles in an overnight strike, further stoking Russian tensions with the U.S.

On Wall Street, the Dow Jones Industrial Average dipped while the Nasdaq Composite rose, driven by gains in Nvidia shares ahead of the closely-watched earnings report.

European earnings came in before markets opened from Imperial Brands and Thyssenkrupp, while a finalized euro zone inflation reading for October was published during the session.

European markets closed lower on Monday, with investors turning their attention to regional inflation data and to Nvidia earnings due Stateside on Wednesday.

Overnight, Asia-Pacific markets traded mostly higher, as investors parsed the speech of Chinese financial policymakers at an investment summit in Hong Kong.

Europe stocks close lower

Europe's Stoxx 600 index closed lower for a third straight session on Tuesday, falling 0.43%.

Germany's DAX and France's CAC 40 index both closed 0.67% lower, as the U.K.'s FTSE 100 lost 0.12%.

— Jenni Reid

Caixabank down 5% after releasing three-year plan

Shares of Spain's Caixabank were down 5.2% in late afternoon trade after the financial services firm released a strategy to maintain an average return on tangible equity (ROTE) above 15% across 2025 to 2027.

Key targets include growing loans to companies and households, increasing digital sales with new products and services and hiring 3,000 people, primarily with "technical skills."

Analysts at Citi said the plan was "broadly in line with expectations" and was unlikely to provoke a major reaction, also noting the ROTE target was down from more than 17% in 2024.

"The bank plans to retain more capital – with revenue growth (underpinned by volumes and the [asset-liability committee]) making up for a decline in interest rates and cost inflation."

Caixabank shares are up 44.7% in the year to date.

— Jenni Reid

U.S. stocks tumble at the open

Stocks fell broadly at the open Tuesday as tensions between Russia and Ukraine increased.

The Dow lost more than 300 points, or 0.8%. The S&P 500 shed 0.5% along with the Nasdaq Composite.

— Fred Imbert

Europe’s auto giants face a ‘perfect storm’ of challenges, ING economist says

The Bundesbank says outlook for Germany's economy is 'weak' even after surprise third-quarter GDP growth

Germany's Bundesbank on Tuesday said the outlook for the country's economic output remained "weak" even after a preliminary reading of Germany's gross domestic product unexpectedly showed 0.2% growth in the third quarter.

The third-quarter growth does not mean that underlying economic momentum has improved, the central bank said in its latest monthly report, adding that there was only "little reason for a noticeable short-term recovery of the German economy," according to a CNBC translation.

The lull in the German economy is expected to continue in the fourth quarter, the central bank said, noting that the industry and building sectors are likely to weigh on economic performance.

— Sophie Kiderlin

Russia-U.S. tensions hit global markets as Putin lowers the threshold for a nuclear strike

Global stocks fell and investors fled to safe-haven assets on Tuesday, as global markets reacted to escalating tensions between the world's two largest nuclear powers: Russia and the U.S.

Europe's Stoxx 600 stock index was down almost 1% at 12:23 p.m. London time, hitting 498.56 — its lowest level since August. In the U.S., stock futures tied to the Dow Jones Industrial Average fell 0.5%, S&P futures slid around 0.2%, while Nasdaq 100 futures lost 0.1%.

The declines come after Russian President Vladimir Putin amended Russia's nuclear doctrine that outlines the conditions that would prompt Moscow to deploy its nuclear arsenal, Russian state news agency Tass reported Tuesday.

Read the full story here.

— Ruxandra Iordache, Katrina Bishop

Rheinmetall shares rise 4% as it says sales could rise to $21 billion in 2027

Rheinmetall shares were on the rise Tuesday, adding as much as 4.2% at around 11:27 a.m. London time, making the company the biggest gainer on the Stoxx 600 and taking the share price to an all-time high.

The rise comes after the defense company said in its capital markets day presentation that it is targeting sales of around 20 billion euros ($21.1 billion) in 2027, and an operating margin as high as as 18%.

Its defense segments are set to more than double from current figures to the 2027 forecast, the company said, as European countries boost their defense spending.

For the full year 2024, sales are expected to be around 10 billion euros.

Separately on Tuesday, investors were also considering geopolitical risks after President Vladimir Putin updated a doctrine outlining the requirements for the country to use nuclear weapons.

— Sophie Kiderlin

October euro zone inflation rate confirmed as 2%

A final reading of annual euro zone inflation figures on Tuesday confirmed a preliminary reading of 2% for October, according to data from statistics agency Eurostat.

This marked an increase from the 1.7% rate of September.

So-called core inflation, which excludes food, energy, alcohol and tobacco prices, came in at 2.7%, also confirming the preliminary print.

— Sophie Kiderlin

European markets fall 1% after starting day in positive territory

The Stoxx 600 on Tuesday reversed course after starting the day higher, falling as much as 1% by 9:50 a.m. London time.

Almost all sectors were in negative territory, with banks and travel and leisure stocks falling by more than 2% each. Utilities were the sole outlier, adding 0.18%.

— Sophie Kiderlin

Mulberry falls 7% after posting 19% revenue drop in first half

Shares in British luxury company Mulberry were last down around 6.8% after the company posted its first half results.

In the 26 weeks to Sept. 28, group revenue fell 19% to £56.1 million ($71 million), the company said, down from £69.7 million a year earlier.

"The first half results illustrate the clear need to reprioritise and rebuild the business," Mulberry CEO Andrea Baldo said in a statement. Baldo took on the role of chief executive less than three months ago.

"In response to current market conditions, we have taken decisive steps to streamline operations, improve margins, reduce working capital, and strengthen our cash position," Baldo said.

— Sophie Kiderlin

Nestle to cut additional $2.8 billion of costs by 2027

The company's logo is seen at a Nestle plant in Konolfingen, Switzerland September 28, 2020.
Arnd Wiegmann | Reuters
The company's logo is seen at a Nestle plant in Konolfingen, Switzerland September 28, 2020.

Nestle on Tuesday said it would cut at least a further 2.5 billion swiss francs ($2.8 billion) on top of existing initiatives by the end of 2027, in a bid to fund higher investments.

The Swiss company plans to increase investments in advertising and marketing to 9% of sales by the end of next year.

It also said it would carve out its water and premium beverages division as a standalone business by the start of 2025.

"Nestlé's action plan presented today will allow the company to drive category growth and improve market share performance. Actions will include targeted investments in winning brands and growth platforms, more focused innovation activities to drive greater impact, and systematically addressing underperformers," the company said in the statement.

The announcement comes a mere two months after Laurent Freixe took over as Nestle CEO in September.

— Sophie Kiderlin

European markets open higher

European markets opened higher on Tuesday, with the Stoxx 600 index adding 0.35% shortly after trading began.

Sectors were all in positive territory, with mining stocks leading gains, last up 1.3%.

Regional bourses were also broadly higher, with the U.K.'s FTSE 100 rising 0.4%, while France's CAC 40 added 0.28% and Germany's DAX inched 0.1% higher.

— Sophie Kiderlin

Imperial Brands reports 4.6% increase in adjusted operating profit for its full fiscal year

Imperial Brands on Tuesday reported a 4.6% annual increase in adjusted operating profit to £3.91 billion ($4.96 billion) for its full fiscal year that ended on Sept. 30. The hike was ahead of analyst expectations, according to Reuters.

The company said the rise was driven by "improved profitability" in its tobacco and next generation products business, along with its distribution arm.

Within the tobacco division, adjusted operating profit rose 2.5%.

— Sophie Kiderlin

Thyssenkrupp books $1 billion impairment on struggling steel unit

A general view of the gate of the Thyssenkrupp industrial area in Duisburg, Germany, on August 29, 2024. (Photo by Ying Tang/NurPhoto via Getty Images).
Nurphoto | Nurphoto | Getty Images
A general view of the gate of the Thyssenkrupp industrial area in Duisburg, Germany, on August 29, 2024. (Photo by Ying Tang/NurPhoto via Getty Images).

Germany's Thyssenkrupp on Tuesday reported a 1-billion-euro ($1.06 billion) impairment on its struggling steel division as the industrial powerhouse flagged "gloomy volume" expectations and structural challenges in the sector.

The firm said its net loss of 1.5 billion euros in the fiscal year ending Sept. 30 — after deducting minority interest — was mainly due to asset impairments totaling around 1.2 billion euros, of which 1 billion euros were undertaken by its Steel Europe division.

Read the full story here.

— April Roach

European markets: Here are the opening calls

European markets are expected to open higher Tuesday.

The U.K.'s FTSE 100 index is expected to open 39 points higher at 8,144, Germany's DAX up 53 points at 19,227, France's CAC up 24 points at 7,298 and Italy's FTSE MIB up 115 points at 34,002, according to data from IG.

Earnings come from Imperial Brands and Thyssenkrupp and finalized euro zone inflation data for October is due.

— Holly Ellyatt

CNBC Pro: 'Top quality asset': Strategist names his top stock to buy in India right now

Indian markets have been under pressure in recent weeks, but strategist Matt Orton remains bullish on the country, revealing "one of his favorite" stocks right now.

"India has been my most overweight country and that still remains the fact outside of the U.S.," the chief market strategist at asset management firm Raymond James Investment Management said, naming a stock that is one of his favorites.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Fed can be 'patient' due to economic strength, CIO says

One reason the postelection rally for stocks appears to have stalled may be that investors are growing less confident in the rate cut path of the Federal Reserve.

According to the CME FedWatch Tool, trading in the fed funds futures market currently implies a 62.1% likelihood of a rate cut in December. That is down from 65.3% a week ago, and 76.8% a month ago.

Jim Baird, chief investment officer at Plante Moran Financial Advisors, said recent signs of continued strength for the economy could lead to the Fed slowing its pace of cuts.

"It is going to call into question how much more they need to cut, and how quickly. I think that's what they've really been hinting at — that they're going to be patient, they're going to be data dependent, and that could mean a slower pace of rate cuts than either their forecasts have suggested or the market was expecting," Baird said.

Baird added that the effect of the election, such as the potential for higher tariffs under President-elect Donald Trump, "exacerbate" those questions about how much the Fed will cut.

— Jesse Pound

CNBC Pro: 'Go for gold' says Goldman Sachs, but other Wall Street banks aren't so sure

Three Wall Street banks have taken differing views on gold's trajectory in 2025, reflecting the complex economic outlook.

Goldman Sachs expects the price of the yellow metal to reach $3,000 per ounce by December 2025, saying "Go For Gold" in a note from Nov. 17.

Others, however, including JPMorgan and UBS, have taken a different view.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Copyright CNBC
Contact Us