As Bags of Europe ended down on Tuesday (11), reflecting the caution of investors in the face of the trade war began by the president of the United States, Donald Trumpand the geopolitical tensions between Russia and Ukraine.
In London, the FTSE 100 index retreated 1.21%to 8,495.99 points. Frankfurt’s Dax fell 1.34%to 22,316.86 points. CAC 40, in Paris, fell by 1.31%to 7,941.91 points.
In Madrid, IBEX 35 lost 1.57%to 12,877.30 points, while in Lisbon, PSI 20 fell 0.01%, to 6,738.91 points. Already in Milan, FTSE MIB closed down 1.38%, to 37,698.31 points. The numbers are preliminary.
Investors are aware of the possible new tariff measures of the US government and its impacts on the global economy. In addition, the focus is on US consumer inflation data (CPI), which will be released on Wednesday.
For RBC Capital Markets analysts, the risk of new US tariffs on the euro zone can bring temporary relief to the sterling pound in the second quarter after successive falls. According to them, this is because the data indicate that the United Kingdom maintains a small commercial deficit of goods and services with the United States.
In the corporate sector, Volkswagen, Europe’s largest automaker, reported a profit slightly above expectations in the fourth quarter of 2024, which initially boosted its actions by more than 2% at the opening. However, with the risk aversion scenario, the company’s roles ended the 1.09%drop -down trading session in Frankfurt.
In the geopolitical front, Ukraine’s Armed Forces reached various strategic targets from Russia at dawn on Tuesday, including the Moscow oil refinery, essential for fuel supply in the Russian capital.
Meanwhile, the White House envoy to the Middle East, Steve Witkoff, should travel to Moscow on Thursday to a meeting with Russian President Vladimir Putin, with the aim of discussing a possible ceasefire in the conflict.
