European markets close lower as positive momentum fades

Nathan Laine | Bloomberg | Getty Images

This was CNBC's live blog covering European markets.

European markets closed lower Tuesday, reversing more positive sentiment seen at the start of the week.

The Stoxx 600 index closed down 0.21%, with most sectors in the red. Food and beverage stocks fell 0.83%, while mining stocks rose 0.75%.

Data has been in relatively short supply this week, but investors are gearing up for the release of minutes from the Federal Reserve's latest meeting on Wednesday, along with a U.K. inflation print expected to show a sharp fall in the headline rate.

Henrik Johnsson, co-head of EMEA at Deutsche Bank's Investment Bank, said recent market exuberance —which has taken the Stoxx 600 and others to record highs — was due to a "Goldilocks soft landing scenario."

"Investors can see that rates are probably coming down over time, but they're not coming down because we have ... massive economic underperformance, they're coming down because inflation is slowing. And the most important thing is company performance is actually very good," Johnsson told CNBC's "Street Signs Europe."

Risks may lie ahead later in the year, Johnsson added, including from the U.S. election or for potential sudden economic downturns in Europe or the U.S.

Asia-Pacific markets largely fell overnight while in the U.S., the Nasdaq Composite fell slightly on Tuesday, easing from record levels seen in the previous session.

After a rally the previous day, Nvidia shares dipped ahead of its latest earnings report on Wednesday.

Declining production is a 'significant issue' for Shell: Analyst

Andrew Critchlow, head of EMEA news at S&P Global Platts, discusses Shell's AGM and explains why U.S. oil companies are trading at a premium.

— Katrina Bishop

'Several months' of good inflation data needed before lowering rate, Fed's Waller says

Fed Governor Christopher Waller said Tuesday that he'd like to see more good data on the inflation front before lowering rates.

"The economy now seems to be evolving closer to what the Committee expected," he said. "Nevertheless, in the absence of a significant weakening in the labor market, I need to see several more months of good inflation data before I would be comfortable supporting an easing in the stance of monetary policy."

— Fred Imbert

S&P 500 and Nasdaq open lower Tuesday

Traders work on the floor of the New York Stock Exchange during morning trading on February 29, 2024 in New York City. 
Michael M. Santiago | Getty Images
Traders work on the floor of the New York Stock Exchange during morning trading on February 29, 2024 in New York City. 

The S&P 500 and Nasdaq Composite started Tuesday's trading session in the red.

The broad market index fell 0.2% and the tech-heavy Nasdaq decline 0.4%.

Meanwhile, the Dow Jones Industrial Average traded near the flatline.

— Hakyung Kim

Stocks on the move: SFS up 9%, Pennon down 6.8%

Among Stoxx 600 movements, Swiss mechanical components firm SFS Group topped gains with a 9.3% rise, after analysts at UBS upgraded the stock to "buy" from "neutral."

British water utility firm Pennon Group meanwhile slid 6.8% following its full-year results, which showed 10% higher underlying revenue but an £8.5 million ($10.8 million) loss after tax, down from £0.4 million the previous year.

The company has been embroiled in controversy after thousands of people in the town of Devon were told to boil their water by one of the firm's subsidiaries due to a parasite outbreak.

Pennon on Tuesday said related compensation costs of £215 per household would cost the group around £3.5 million.

— Jenni Reid

UK inflation forecast to fall sharply in April, could hit 2% target

A shopper selects fresh produce from a market stall in the Kingston district of London, UK, on Monday, May 20, 2024. 
Bloomberg | Bloomberg | Getty Images
A shopper selects fresh produce from a market stall in the Kingston district of London, UK, on Monday, May 20, 2024. 

U.K. inflation could be about to hit a "momentous" milestone, with some forecasting that a sharp fall in the April print released Wednesday will take the headline rate below the Bank of England's 2% target.

That would represent a plunge from the current level of 3.2% and could "make or break" a June interest rate cut, economists say.

A reading below 2% on Wednesday would be the lowest headline inflation rate since April 2021.

The decline will largely be driven by the energy market, but the readings on core and services inflation will also be crucial for determining the BOE's path.

Read more here.

— Jenni Reid

AstraZeneca is in its ‘post-Covid era’, CFO says

AstraZeneca shares were 0.6% higher at 9:45 a.m. in London, after the company said it plans to increase its total revenue to $80 billion by 2030, up 75% from $45.8 billion in 2023.

It will focus on its oncology, biopharmaceuticals and rare diseases businesses and expects to release an additional 20 medicines in the next six years.

"We have a lot of confidence in this 80 billion ambition because of the portfolio and the breadth and scale of the portfolio that we see today," AstraZeneca's Chief Financial Officer Aradhana Sarin told CNBC's Arabile Gumede.

AstraZeneca's plans include developing medicines to treat at least half of potential cancers, and developing alternatives to classic treatments like chemotherapy and radiation.

"For us, for sure, this is the post-Covid era," Sarin told CNBC. "We supplied vaccines during the Covid pandemic more because, you know, it was a public health crisis. It was not really our business to be in Covid vaccines."

"We're looking at some weight management drugs as well, potentially also combining them with drugs that help with comorbidities that a lot of the patients with weight management issues have," she said.

Read more here.

— Sophie Kiderlin

XP Power soars 46% on $726 million takeover offer

Shares of power supply solutions firm XP Power popped 46% in early deals, after Advanced Energy Industries made an acquisition offer for the Singapore-headquartered company valuing it at £571 million ($726 million).

Nasdaq-listed Advanced Energy Industries revised up its October 2023 offer of £17.00 per London-listed XP Power share to £19.50 per share.

That represents a 68% premium to the closing share price on May 20, it said.

XP Power has a market capitalization of £275.66 million, according to London Stock Exchange data.

Advanced Energy Industries said the deal would address several "challenges" XP Power faces, including by providing the "additional scale and resources necessary to compete more effectively in the precision power industry."

— Jenni Reid

Europe stocks open lower

European stocks were broadly in the red at Tuesday's open, with the pan-European Stoxx 600 index down 0.26%.

France's CAC 40 and the U.K.'s FTSE 100 were both lower by around 0.4%, as Germany's DAX dipped 0.2%.

— Jenni Reid

AstraZeneca targets near-doubling of revenue by 2030

Pharmaceutical giant AstraZeneca on Wednesday announced a target of $80 billion in total revenue by 2030, up from $45.8 billion in the full-year 2023, via "significant growth in its existing oncology, biopharmaceuticals and rare disease portfolio."

The company plans to launch 20 new medicines before that time, it said in a release on its investor day.

Those drugs have the potential to generate more than $5 billion in peak year revenues, it said.

Read more here.

— Jenni Reid

CNBC Pro: Outperforming value investor names 'very cheap' global gaming stock as a 'contrarian' bet

Shares of a global video game developer are currently being overlooked by the market and are up for grabs at a "very cheap" price, according to Schroders fund manager Vera German.

The company's shares have been hit hard over the past few years, with the stock price declining significantly from its peak in 2021. It has fallen by 40% over the past 12 months alone.

The value investor believes that the company is well-positioned for future growth as it has a net cash of $1.1 billion and a strong cash flow generation.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: U.S. tariff hikes on China EVs will benefit these global stocks, Bernstein says

The U.S move to impose higher tariffs on Chinese electric vehicles is set to have an impact on the U.S. battery supply chain — and create investing opportunities, according to Bernstein.

Those tariffs will benefit the U.S. battery supply chain, where demand is expected to grow at a compound annual growth rate of 25% to 30%, according to Bernstein in a May 13 note.

It names global stocks that investors can consider.

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets: Here are the opening calls

European markets are expected to open lower Tuesday.

The U.K.'s FTSE 100 index is expected to open 43 points lower at 8,381, Germany's DAX down 60 points at 18,708, France's CAC 33 points lower at 8,139 and Italy's FTSE MIB down 140 points at 34,788, according to data from IG.

Earnings come from Kingfisher, Smiths Group, Fresnillo and Generali. Euro zone trade balance and construction data for March are due.

— Holly Ellyatt

Ether leads crypto rally on late surge in ETF optimism

Crypto prices rallied on Monday amid a late surge in optimism around the U.S. Securities and Exchange Commission decision on spot ether exchange-traded funds applications, due this week. The previous consensus was that the funds would likely not be approved.

Ether led the crypto market, surging about 15% to about $3,500, according to Coin Metrics. Bitcoin gained more than 4%, briefly touching $70,000 at one point for the first time since April.

In regular trading, crypto-related stocks rode the wave, with Coinbase and MicroStrategy jumping 8% and 9%, respectively. Miners Marathon Digital and CleanSpark advanced 14% each.

— Tanaya Macheel

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