Shares slip as investors look to earnings, tariff – Money News
By Tom Wilson and Ankur Banerjee
LONDON/SINGAPORE (Reuters) -European shares fell on Tuesday, deflated by blended company earnings, whereas investors took stock of tariff negotiations between the U.S. and its trading companions.
The Euro STOXX 600 index fell 0.4%, with bourses in Germany and France dropping 0.7% and 0.5% respectively.
Chemical shares declined 1.2%, with Dulux paint maker Akzo Nobel dropping 1.9% after decreasing its core revenue outlook for 2025. Earnings from corporations together with SAP and UniCredit had been additionally in focus.
Investors had been additionally following tariff talks forward of Washington’s August 1 deadline, with the European Union exploring a broader set of attainable countermeasures in opposition to the U.S. as hopes for an acceptable settlement fade.
The euro was regular at $1.1689, after rising 0.5% on Monday, however was nonetheless away from the close to four-year high it touched in the beginning of the month. The single currency is up 13% this 12 months as investors look for alternate options to U.S. belongings bruised by tariff uncertainties.
“The euro’s ability to maintain preference over the dollar amid tariff tensions will depend on the extent of any escalation and whether the EU emerges as a relative loser while other countries secure significant deals with the U.S.,” ING analysts wrote in a be aware to shoppers.
Wall Street futures had been flat. The S&P 500 and the Nasdaq closed at file highs on Monday. [.N]
Investors are awaiting outcomes this week from Wall Street giants Alphabet and Tesla, as nicely as from European heavyweights LVMH, and Roche, as uncertainty over tariffs clouds the outlook.
Earlier, Asian share markets drifted decrease after scaling a close to four-year peak.
MSCI’s broadest index of Asia-Pacific shares outdoors Japan hit its highest stage since October 2021 in early Asian hours however was final down 0.5%. The index is up practically 16% this 12 months.
Japanese markets returned after a vacation on Monday following the weekend’s election the place the ruling coalition suffered a defeat in higher home elections, though Prime Minister Shigeru Ishiba vowed to stay in his post.
The yen rallied 1% on Monday, recouping some of the losses from previous weeks and was final down 0.3% at 147.73 per greenback.
FED INDEPENDENCE
The greenback index, a measure in opposition to six different key currencies, was at 97.942. [FRX/]
The rumblings across the Federal Reserve’s independence and whether or not U.S. President Donald Trump will fire Fed Chair Jerome Powell have saved investors on tenterhooks in latest weeks.
Trump appeared close to the purpose of attempting to fire Powell final week, however backed off with a nod to the market disruption that will doubtless comply with.
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