This is CNBC’s live blog covering European markets.
European markets are heading for a mixed open on Tuesday, as investors parse earnings for the impact of U.S. tariffs and resultant global economic uncertainty.
The pan-European Stoxx 600 index closed higher the last five sessions and has returned to a year-to-date gain despite sharp selling in March and early April. A flurry of corporate results could now cloud or brighten the picture in the weeks ahead.
Earnings highlights so far
- HSBC tops profit expectations, announces $3 billion share buyback | view post
- Deutsche Bank reports 39% jump in first-quarter profit, above expectations | view post
- Porsche cuts full-year outlook as tariffs weigh | view post
- Lufthansa posts slight revenue beat, warns U.S. tensions could hit demand | view post
- Novartis posts better-than-expected first-quarter sales, hikes guidance | view post
Data is due on Spanish economic growth, ahead of the figure for the wider euro zone on Wednesday.
Traders will also be keeping an eye on U.S. jobs market data out at 10 a.m. ET for clues on the health of the world’s largest economy and the impact on Federal Reserve rates policy.
Asia-Pacific markets were mostly higher on Tuesday, while U.S. stock futures were near-flat ahead of Wall Street’s own earnings bonanza.
Novartis posts better-than-expected first-quarter sales, hikes guidance
Swiss pharmaceutical firm Novartis reported better-than-expected first-quarter sales and raised its full-year guidance.
Net sales were up 15% on a constant currency basis to $13.2 billion, compared to the $13.12 billion estimated by analysts in an LSEG poll.
Quarterly adjusted core operating income rose 27% to $5.58 billion versus the $5.07 billion expected.
Novartis also raised its full-year guidance for 2025, forecasting net sales to grow by high single digits and core operating income to increase by low double-digits.
The results come as the global pharmaceutical industry waits with bated breath for anticipated U.S. tariffs after the President Donald Trump’s administration launched an investigation into the sector earlier this month.
— Karen Gilchrist
Deutsche Bank posts 39% jump in first-quarter profit, above expectations
Germany’s largest lender Deutsche Bank posted higher-than-expected first-quarter profit.
Net profit attributable to shareholders reached 1.775 billion euros ($2.019 billion) in the first quarter, up 39% year-on-year and above analyst expectations of around 1.64 billion euros, according to a Reuters poll. The bank reported profit of 106 million euros for the December quarter.
Revenues reached 8.524 billion euros over the period, up 10% year-on-year and above a $7.224-billion-euro result in the fourth quarter.
— Ruxandra Iordache
Lufthansa posts slight revenue beat but misses on profit, warns U.S. tensions could hit demand
Lufthansa reported a 10% year-on-year rise in first-quarter revenue, as the European airline group said risks had increased and tensions between the U.S. and the European Union could dent travel demand.
Revenue hit 8.1 billion euros ($9.2 billion) in the quarter, just ahead of estimates in an LSEG-compiled analyst consensus. Net income slid 21% to a 885 million euro loss, greater than the 617 million euro loss forecast in the same poll.
The group said tensions between the U.S. and key trade partners including the EU and China were leading to an “increasingly volatile global economic environment.” It warned that this could also lead to financial losses due to more subdued demand, changes in demand, decreases in airfreight volumes, market fluctuations or higher costs for materials, aircraft and aircraft parts.
— Jenni Reid
HSBC first-quarter profit tops expectations
Europe’s largest lender HSBC’s first-quarter results on Tuesday beat estimates, though profit and revenue both declined on an year-on-year basis.
The bank also announced share buyback of up to $3 billion which it intends to complete before its 2025 interim results are announced.
Here are HSBC’s first-quarter 2025 results compared with consensus estimates compiled by the bank.
- Profit before tax: $9.48 billion vs. $7.83 billion
- Revenue: $17.65 billion vs. $16.67 billion
The bank’s profit, however, declined 25% on a year-on-year basis. Revenue fell 15% from last year.
Profit before tax, however, soared nearly 317% from the previous quarter.
— Lee Ying Shan
Porsche cuts full-year outlook as tariffs weigh
Germany’s Porsche trimmed its sales and profit margin forecasts in an update published after the market close on Monday, partially citing the impact of U.S. tariffs.
The company said it now expects sales revenue of between 37 billion euros ($42.1 billion) and 38 billion for the 2025 financial year, down from a previous forecast of 39 billion to 40 billion euros. Its automotive net cash flow margin is now seen between 4% and 6%, cut from between 7% and 9%, while its automotive earnings before interest, taxes, depreciation and amortization (EBITDA) margin was placed at 16.5% to 18.5%, down from 19% to 21%.
“The introduction of US import tariffs leads to negative impacts for the months of April and May 2025 which are included in the adjusted forecast. However, the adjusted forecast does not take into account further effects of the introduction of US import tariffs,” the company said in a statement.
“Currently it is not yet possible to make a reliable assessment of the effects for the financial year,” it added.
Porsche, which is majority-owned by the Volkswagen Group, said it was also suffering from waning Chinese demand for all-electric luxury cars.
First-quarter results are due later Tuesday.
— Jenni Reid
Europe markets: Here are the opening calls
The U.K.’s FTSE 100 was seen opening 10.6 points higher at 8434.7 points, according to IG data at 5:13 a.m. in London.
Germany’s DAX was seen rising 34.1 points to 22,297, while France’s CAC 40 dropped 18 points to 7,553. Italy’s MIB was last seen nudging 34 points higher to 37,001.
— Jenni Reid
Spot gold slides on uncertainty over U.S-China trade negotiations
Spot gold slid Tuesday, reversing gains from overnight as bargain-hunting kicked in.
The precious metal slid 0.33% as of 9.15 a.m. Singapore time on Monday to trade at $3,330.87 per ounce, as investors kept watch on developments around trade negotiations between the U.S. and China.
The latest moves in the bullion — which is a traditional hedge against political and financial instability — come after it crossed the $3,500 threshold to hit an all-time high last week, on the back of the heightened macroeconomic uncertainty.
— Amala Balakrishner
Oil prices fall as trade tensions between U.S. and China dent investor sentiment
Oil prices fell Tuesday on the back of simmering trade tensions between the U.S. and China.
Brent Crude slipped 0.25% to trade at $65.61 per barrel as of 8.26 a.m. Singapore time,
Meanwhile, the West Texas Intermediate crude fell 0.31% to $61.86.
The moves come as the U.S.-China trade war dominates investor sentiment on oil prices.
China is the world’s largest importer of oil and the higher U.S. tariffs may put pressure on its fuels and petrochemicals sectors.
— Amala Balakrishner
Mag 7 earnings could be ‘dictating’ market’s tone this week: Deutsche Bank
Megacap technology earnings this week will be pivotal for the market, according to Deutsche Bank.
Meta and Microsoft are both set to report earnings on Wednesday. Apple and Amazon are slated to release results on Thursday.
“It’s fair to say that these Mag-7 earnings will go a long way to dictating the tone of the week,” Jim Reid, the bank’s global head of macro and thematic research, wrote to clients.
— Alex Harring
