European markets slipped into negative territory on Friday, as regional traders reacted to fresh tariff threats from U.S. President Donald Trump and a sell-off of chipmaker giant Nvidia‘s stock.
The pan-European Stoxx 600 index was 0.3% lower at 10:48 a.m. London time, climbing down from heavier losses seen earlier in the session. The French CAC 40 and Germany’s Dax were both down around 0.2%, while London’s FTSE 100 gained 0.2%.
The Stoxx Technology index led regional losses on Friday, with the index shedding 1.1% by 10:51 a.m. London time. Shares of companies in Europe’s semiconductor industry saw losses on Friday morning, after Nvidia suffered a major selloff on Wall Street on Thursday that saw $273 billion wiped off of the company’s value. Dutch semiconductor manufacturer BE Semiconductor was down 0.6%, while chipmakers Infineon and ASML both lost around 1.9%.
Regional markets ended Thursday’s session lower after Trump threatened to impose 25% duties on imports from the EU, saying the tariffs would be announced “very soon” and apply to “cars and all other things.”
The president also confirmed on Thursday that sweeping 25% tariffs on goods entering the U.S. from Canada and Mexico would come into effect on March 4, while China will face additional 10% tariffs from that date.
Following talks with U.K. Prime Minister Keir Starmer in Washington on Thursday, Trump hinted that Britain may manage to avoid his tariffs regime.
“I think there’s a very good chance in the case of these two great, friendly countries, I think we could very well end up with a real trade deal where the tariffs wouldn’t be necessary,” the president told reporters at a press conference. “We’ll see.”
Trump added that Starmer had been “working hard” to convince him not to impose tariffs on the U.K., and that he was “very receptive to it.”
Corporate earnings will also remain in focus on Friday, with a slew of European firms poised to report on their finances. Those include Allianz, Sberbank, British Airways owner IAG, Holcim and UCB.
Economic data out of the region on Friday will include German retail sales for January, French inflation figures and an update to Britain’s Nationwide House Price Index.
BASF CEO optimistic about the year ahead after a difficult 2024
Markus Kamieth, Chairman of the Board of Executive Directors of the chemical company BASF, speaks at the annual press conference of the chemical company BASF.
Picture Alliance | Picture Alliance | Getty Images
The chief executive of BASF says the German chemical company is approaching 2025 with “quite some optimism” after a challenging year.
“2024 was a difficult year for the chemicals industry but BASF has performed very well in this environment, and we are looking also with confidence into 2025,” BASF CEO Markus Kamieth told CNBC’s Annette Weisbach on Friday.
“However, we are not expecting a lot of tailwinds from most of our regional markets,” he added.
Asked about the potential impact of U.S. tariffs, BASF’s Kamieth said the firm had a “vey favorable” position compared to other chemical companies, given its “significant footprint” in the U.S.
“But the insecurity around trade policies and tariffs is certainly not helping overall industrial growth and overall GDP growth. So, we hope that overall, this clarity that is needed will be coming quickly to us, so we can actually move forward and adapt our tactics and strategies,” Kamieth said.
Shares of BASF traded 1.5% higher on Friday morning.
— Sam Meredith
Gold can outperform other commodities amid tariff and inflation uncertainties: FedWatch Advisors
Gold can still outperform other commodities because of a challenging environment amidst tariff and inflation pressures, Ben Emons, founder of FedWatch Advisors, told CNBC’s Juliana Tatelbaum on “Street Signs Europe” on Friday.
Emons pointed out that gold has had “an incredible run” since the U.S. Presidential elections in November.
“I do think in the bigger scheme of things, it is actually what I call the ‘gold smile’, like the ‘dollar smile.’ It appreciates under uncertainty, but it also appreciates because of anticipation of inflation or higher growth,” Emons said.
“Gold will continue to be in a better position to outperform say relative to other commodities because it is this type of environment and a risk of inflation…I think gold will do really well in that environment.”
— Sawdah Bhaimiya
European indexes outperformed U.S. counterparts in February
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European markets have broadly outperformed their American counterparts in February, the first full trading month since Donald Trump took office once again in the United States.
The pan-European Stoxx 600 is up 2.93% so far this month, according to LSEG data, while the S&P 500 index is down 2.96%. Wall Street’s tech-heavy Nasdaq Composite is down 5.52%, LSEG’s data shows, and the Dow Jones Industrial Average has shed 2.93% over the course of February.
When it comes to individual country indexes in Europe, London’s FTSE 100 has gained around 1.2% in February, while Germany’s Dax is up 3.4% month-to-date. The French CAC 40 has risen 1.7%, and Italy’s FTSE MIB is up 5.9% since the beginning of February.
As Wall Street prepared to open for the final trading session of the month on Friday, stock futures edged higher, while shares in Europe slumped.
— Chloe Taylor
It’s ‘good for the U.S. and U.K. to be talking trade, former U.K. defence secretary says
Former U.K. Defence Secretary Penny Mordaunt told CNBC’s “Squawk Box Europe” that it was positive the U.S. and U.K. were discussing trade once again.
Prime Minister Keir Starmer visited the White House Thursday, where he discussed a potential trade deal as well as the war in Ukraine with President Donald Trump.
Mordaunt said she was “pleased it was a good visit.”
“What I think is also good is that we’re back to talking about trade,” she added Friday.
During a press conference after the meeting, Trump signalled that a trade deal between the two countries could potentially be brokered that could see the U.K. escape the tariffs he’s repeatedly threatened to impose on goods imported to the U.S.
Mordaunt noted that despite talks about a federal-level trade deal previously stalling, the U.K. had continued talks and formed agreements with individual U.S. states.
“So we have a really good understanding about what businesses need on a state-by-state basis. We’re in a good position to think about what sort of economic agreements would really help both of our businesses open up more of our markets to each other,” she said.
Mordaunt, from the Conservative Party which currently makes up the main opposition to Starmer’s government, also addressed the outlook for the war in Ukraine and European defence spending, which were also key topics at the meeting between Trump and Starmer.
“I think we’re getting there,” she said when asked if she believed a peace deal for Ukraine was close.
“The key thing is: do we have enough to deter Russia’s future expansionist aggression?” Mordaunt added, saying that Europe still had “a fair way to go to step up and demonstrate that.”
She also noted that she believed the U.K.’s increase in defence spending does not go far enough. The country announced earlier this week that it would increase defence spending to 2.5% of the national gross domestic product from April 2027.
— Sophie Kiderlin
Mining stocks lead losses after China vows retaliation to additional US tariffs
European mining stocks led losses on Friday morning, after the Chinese government said it would “take all necessary countermeasures to defend its legitimate rights and interests” should the U.S. impose further import tariffs on its goods.
On Thursday, U.S. President Donald Trump said he would slap additional 10% duties on Chinese imports from March 4.
The Stoxx Basic Resources index was 1.3% lower during early trade, paring earlier losses, with Syensqo shedding 3%, Voestalpine down 2.7% and Norsk Hydro losing 2.6%.
— Chloe Taylor
Trump signals U.S. and U.K. could reach ‘real trade deal’ without tariffs
U.K. Prime Minister Keir Starmer and U.S. President Donald Trump at a joint press conference in the East Room at the White House on Feb. 27, 2025, in Washington, D.C.
Carl Court | Getty Images News | Getty Images
U.S. President Donald Trump signaled the U.K. could broker a “real trade deal” and escape tariffs amid ongoing negotiations sweetened by British Prime Minister Keir Starmer’s Thursday visit to the White House.
When asked during a joint press briefing whether Starmer had convinced Trump to avoid additional levies on Britain, Trump said, “He tried! He was working hard, I’ll tell you that. He earned whatever the hell they pay him over there. But, he tried … I think there is a very good chance that in the case of these two great friendly countries, I think we could end up with a real trade deal that … where the tariffs wouldn’t be necessary. We’ll see.”
— Ruxandra Iordache
China vows to retaliate after Trump threatens 10% tariff hike
China’s Ministry of Commerce said Friday that it “firmly opposes” U.S. President Donald Trump‘s latest threat to ramp up tariffs on Chinese goods and vowed retaliation if necessary.
“If the U.S. insists on its own way, China will take all necessary countermeasures to defend its legitimate rights and interests,” a Ministry of Commerce spokesperson said in a statement, translated by CNBC.
“We urge the U.S. side to not repeat its own mistakes, and to return as soon as possible to the right track of properly resolving conflicts through dialogue on equal footing,” it said.
— Anniek Bao and Evelyn Cheng
Losses for Europe’s chipmakers after Nvidia sell-off
The Stoxx Technology index was down 1.2% at 8:35 a.m. London time, after shares of chipmaking behemoth Nvidia sold off on Wall Street on Thursday to wipe $273 billion off of the company’s value.
In early European trade on Friday, Dutch semiconductor manufacturer BE Semiconductor was down 9%, while chipmakers Infineon and ASML were down 3% and 6.6%, respectively. Â
— Chloe Taylor
French inflation cools to 0.8% in February
French inflation cooled to 0.8% in February, according to preliminary figures from the country’s statistics agency Insee.
The Consumer Price Index is expected to have risen by 0.8% year-on-year, after an increase of 1.7% in January. Insee said that if the preliminary figures are confirmed next month, it will mark the first time in four years that France’s annual inflation rate has fallen below 1%.
— Chloe Taylor
German retail sales rise more than expected
German retail sales rose 0.2% in real terms between December and January, preliminary figures showed on Friday. Analysts polled by Reuters had expected January retail sales to remain unchanged from the previous month.
— Chloe Taylor
Allianz reports record profit for 2024
Financial services giant Allianz reported a record annual operating profit of 16 billion euros ($16.6 billion) on Friday when it published its full-year earnings for 2024.
The firm said it marked a year-on-year rise of 8.7%, with the growth “supported by all business segments.”
— Chloe Taylor
Opening calls
European stocks are expected to open in negative territory on Friday, as investors weigh U.S. President Donald Trump’s latest threat to impose tariffs on the European Union.
London’s FTSE 100 is expected to open 0.6% lower at around 8,700 points, according to IG, while the German DAX is slated to shed 1.1% at the open and the French CAC 40 is expected to open 0.8% lower.
— Chloe Taylor