European markets set to stumble at the open as Trump tariffs dent sentiment

Mar 13, 2025
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European markets are expected to open in mixed territory Thursday, stumbling lower as President Donald Trump’s tariffs policy upends global trading relationships.

The U.K.’s FTSE 100 index is expected to open 8 points higher at 8,537, Germany’s DAX down 47 points at 22,611, France’s CAC 2 points lower at 7,983 and Italy’s FTSE MIB 32 points lower at 38,230, according to data from IG. 

Investors in Europe will be keeping an eye on earnings from Hugo Boss, Hannover Re and Deliveroo, with no major data releases due today.

Thursday marks the second and final day of CNBC’s CONVERGE LIVE event in Singapore, where business leaders, investors and policymakers are discussing the brewing global trade war. Follow CNBC’s live coverage from event here.

Volatility has been the flavor of the week for markets with Trump’s tariffs on steel and aluminum imports —and retaliatory measures from the European Union and Canada — prompting declines across major bourses.

S&P 500 futures ticked higher Wednesday evening after the index posted its first winning session this week. Sentiment was boosted after February’s U.S. consumer price index came in softer than expected; headline inflation rose 0.2% from the prior month and 2.8% on an annual basis.

The figures bolstered optimism about the direction of the economy — amid growing concerns about a U.S. recession — although economists warn that tariffs are likely to quickly lead to higher prices for consumers.

Hugo Boss warns of macroeconomic risks ahead as fourth-quarter sales meet expectations

Pedestrians walk past a German luxury fashion house Hugo Boss store in Shenzhen Bao’an International Airport.

Alex Tai | SOPA Images | LightRocket | Getty Images)

Hugo Boss on Thursday posted fourth-quarter sales in line with expectations, but provided a tepid growth forecast for the year, citing “macroeconomic and geopolitical volatility” and continued weakness in China.

The German fashion house recorded revenues of 1.25 billion euros [$1.35 billion] in the three-month period, just marginally ahead of the 1.2 billion euros forecast by LSEG analysts. Net income came in at 126 million euros, just shy of the 128 million euros anticipated.

Full year sales increased 3% to total 4.3 billion euros, also in line with forecast. Operating income fell 12% over the period to 361 million euros, after the company lowered its full-year outlook in July on challenging macroeconomic factors.

The company said it expected those challenges to persist into 2025, forecasting group sales to increase or decline by up to 2% over the year. Asia-Pacific sales were cited as a particular laggard amid “ongoing uncertainties regarding the further recovery of industry development in China.”

“Subdued consumer sentiment and muted store traffic have been weighing on business performance since the beginning of the year, with the overall market environment remaining uncertain also going forward,” the company said in a statement.

— Karen Gilchrist

Ferrari CEO says carmaker is ‘ready’ with countermeasures as Europe’s automakers brace for tariffs

The chief executive of Ferrari on Thursday said the company was prepared for potential U.S. tariffs on European automakers.

“We are ready with some countermeasures,” Ferrari CEO Benedetto Vigna told CNBC’s Robert Frank at CONVERGE LIVE in Singapore on Thursday.

“We are watching what’s going to happen in the next month, next weeks … we are on the same boat in terms of tariffs,” he added.

European automakers have been grappling with trade policy uncertainty in recent months, with the threat of U.S. import tariffs raising alarm bells among many original equipment manufacturers (OEMs).

Read the full story here.

— Anniek Bao, Sam Meredith

U.S. more likely to reach broad deal with China under Trump, diplomat says

Prospects for a broad deal between the U.S. and China have improved following Donald Trump’s election as president, two former diplomats said during a panel discussion at CNBC’s CONVERGE LIVE.

David Adelman, former U.S. ambassador to Singapore, said Trump’s tough stance on trade put him in a stronger position to overcome domestic opposition when negotiating with Beijing, much like when former U.S. President Richard Nixon reestablished ties with China in the 1970s.

“No one can accuse Trump of being soft on China,” he said.

Kishore Mahbubani, a prominent former Singapore diplomat, said both the U.S. and China know there will be no winners in a conflict between the two giants.

— Kevin Lim

Private equity industry likely to see shakeup: fund of funds manager

The private equity market is likely to experience a shake-up, with some fund managers unable to raise cash amid difficulty in monetizing current investments.

Serena Tan, CEO of Gaia Investment Partners, a Malaysian fund of funds manager, said exits from existing private equity funds are still challenging because of lackluster activity in the initial public offerings and mergers and acquisitions markets. This meant there was less cash to recycle into new private equity investments, she said.

Many private equity funds may have raised their last funds, Tan added.

— Kevin Lim

European markets: Here are the opening calls

European markets are expected to open in mixed territory Thursday.

The U.K.’s FTSE 100 index is expected to open 8 points higher at 8,537, Germany’s DAX down 47 points at 22,611, France’s CAC 2 points lower at 7,983 and Italy’s FTSE MIB 32 points lower at 38,230, according to data from IG. 

Investors in Europe will be keeping an eye on earnings from Hugo Boss, Hannover Re and Deliveroo. There are no major data releases taking place today.

— Holly Ellyatt

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