This is CNBC’s live blog covering European markets.
European stock markets closed lower on Tuesday, sharply extending losses as trade tensions between the U.S. and Canada escalated.
After a negative start to the week for global equities as U.S. growth fears weighed, the pan-European Stoxx 600 ended Tuesday down by another 1.7%.
Milan-listed shares of Jeep and Dodge owner Stellantis fell 5%, with the Stoxx Autos index down 2.13%, after U.S. President Donald Trump threatened to hike tariffs on cars coming into the U.S. from Canada. Stellantis has several production facilities in Canada.
Stellantis and other automakers which sell to the U.S. and have major production operations in the countries targeted by tariffs, including Volkswagen, are currently benefiting from a temporary tariff reprieve if their goods comply with the United States-Mexico-Canada Agreement (USMCA.)
However, writing on social media, Trump said Tuesday that “if other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA!”
U.S. stocks were also lower during early deals after Trump also said he would raise tariffs on Canadian steel and aluminum imports by an additional 25%, bringing the total duties to 50%. The new measures come into effect from Wednesday. It comes after Ontario’s government issued a 25% tax on electricity exports to the U.S.
Elsewhere in European markets, the Stoxx Europe 600 Travel & Leisure index dropped 3%, with shares of British Airways owner International Airlines Group down by 6.1%. The company on Monday announced the launch of a corporate investment arm that will funnel up to 200 million euros ($218 million) into “high-potential companies shaping the future of aviation.”
Healthcare stocks were also in negative territory, after Danish pharmaceutical giant Novo Nordisk’s latest weight loss drug trial results. The pharma giant closed 3.8% lower.
Volkswagen meanwhile reported a 15% year-on-year drop in annual operating profit on Tuesday, citing an increase in costs and “extraordinary expenses” in regards to its restructuring plans.
Regional markets kicked off the new trading week in lower territory on Monday, continuing the volatility seen in worldwide markets last week in the face of uncertainty over the global trade and tariffs outlook.
When asked about the possibility of a recession, Trump said during a Fox News interview that aired on Sunday that the economy was going through “a period of transition.” Economists argue that Trump is proving to be something of an “agent of chaos” with his unpredictable trade tariff policies but assess that a downturn isn’t in the cards just yet.
Europe stocks close lower, euro climbs
European stock markets closed lower on Tuesday, pulled down by global growth concerns and the announcement of higher U.S. duties on Canadian steel and aluminum imports.
The regional Stoxx 600 index provisionally closed 1.79% lower. France’s CAC 40 and Germany’s DAX both shed around 1.3%, while the U.K.’s FTSE 100 lost 1.2%.
The euro meanwhile strengthened 0.88% against the U.S. dollar to $1.0927, as the wider U.S. dollar index — measuring the greenback against a basket of currencies — dropped 0.61%.
— Jenni Reid
Leonardo slightly higher after 2024 results release
Shares of Italian aerospace and defense firm Leonardo were 2% higher at 4:28 p.m. London time, pulling back from earlier gains, after the company reported a 11.1% rise in annual revenue and 12.9% increase in earnings before interest, taxes and amortization (EBITA).
It also forecast revenue of 18.6 billion euros ($20.3 billion) for 2025, above the 17.8 billion euros recorded for 2024 and higher than its previous estimate.
Leonardo shares have soared more than 65% in the year to date amid a boom in European defense names on expectations of higher regional spending on the sector.
— Jenni Reid
Auto manufacturers struggling to make money on lower-end cars, analyst says
Tim Urquhart, principal automotive analyst at S&P Global Mobility, discusses Volkswagen’s fourth-quarter results and the outlook for the automotive industry in the face of geopolitical tensions.
U.S. stocks fall again on Tuesday
Stocks kicked off Tuesday’s session in the red, extending their losses from Monday’s sell-off.
The Dow Jones Industrial Average shed 77 points, or 0.2%. The S&P 500 also slid 0.2%, while the Nasdaq Composite edged 0.1% lower.
— Lisa Kailai Han
UK retail sales saw ‘modest growth’ in February
Shoppers walk past temporary billboards for the Regent Street retail business community, on Feb. 25, 2025, in London, England.
In the four weeks to March 1, U.K. retail sales rose 1.1% year-on-year, the British Retail Consortium said on Tuesday.
Food sales were up by an annual2.3% in February, while non-food sales were flat, the BRC said.
“Retail sales saw more modest growth in February. While sales growth across non-food categories was generally muted, it was propped up by online purchases, particularly in computing and electronics,” BRC CEO Helen Dickinson said in a news release out on Tuesday.
“Fashion performed poorly due to the gloomy weather throughout the month, but retailers are hopeful the early March sunshine kickstarts spending on spring and summer wardrobes.”
— Chloe Taylor
Lego revenue jumps 13% amid declining toy market
Danish toymaker Lego Group on Tuesday reported 13% revenue growth in 2024, boosted by strong demand for its building-block toys across different age groups and global markets, despite a decline in the wider toy industry.
Lego annual revenue rose 13% to 74.3 billion Danish kroner ($10.8 billion) in 2024, up from 65.9 billion Danish kroner in 2023, according to its annual report.
Net profit increased 5% to 13.8 billion Danish kroner. The privately-held company’s consumer sales growth of 12% outpaced the global toy market, which Lego said declined 1% in 2024.
CEO Niels Christiansen said it was an “exceptional year” for the group with record top- and bottom-line results, even as it spent more on strategic priorities such as buying more sustainable raw materials.
Lego forecast single-digit revenue growth and steady net profit for 2025, as the company continues to increase spending on sustainability, retail platforms and digital technology.
— Sawdah Bhaimiya
Novo Nordisk shares down almost 3% after new weight loss drug’s trial results disappointed
Danish pharmaceutical giant Novo Nordisk‘s shares were down 2.9% on Tuesday, after the Ozempic-maker reported disappointing trial results for its latest weight loss drug CagriSema.
The company had on Monday reported that its next-generation weight-loss drug CagriSema helped its obese or overweight adult patients with type 2 diabetes drop 15.7% of their weight after 68 weeks. It had previously forecast that the drug would help patients reduce at least 25% of their weight.
— Sawdah Bhaimiya
Volkswagen posts 15% fall in annual profit amid restructuring
German autos giant Volkswagen reported a 15% year-on-year drop in annual operating profit on Tuesday, citing increasing costs and “extraordinary expenses” associated with its restructuring strategy.
It posted a revenue of 324.7 billion euros ($352.8 billion) in full-year 2024, up from 322.3 billion euros last year. The automaker said it expects sales revenue to exceed the previous year’s figure by up to 5% in 2025.
— Chloe Taylor
European markets: Here are the opening calls
European markets are expected to open in mixed territory Tuesday.
The U.K.’s FTSE 100 index is expected to open 9 points higher at 8,606, Germany’s DAX up 5 points at 22,613, France’s CAC 7 points lower at 8,041 and Italy’s FTSE MIB 9 points lower at 38,816, according to data from IG.
Earnings are set to come from Volkswagen, Persimmon, Lego and Leonardo on Tuesday.
— Holly Ellyatt
