London city skyline at dusk.
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LONDON — European stocks are expected to open sharply higher on Wednesday as the arrival of universal 10% tariffs, rather than U.S. President Donald Trump’s threat of 15% hikes, eases nerves in global markets.
british FTSE The index is expected to rise by 0.47%, with Germany’s dachshund french flat CAC40 Italy up 0.2% FTSE MIB According to IG data, it is 0.25% higher.
Wednesday is another busy earnings day iberdrola, E.ON, diageoBayer, Ferrovial, heidelberg materials, post italianFresenius, Novonesis, Telefonica. Data releases will include German GDP, consumer confidence and the latest inflation figures for the euro area.
HSBC Reporting earnings ahead of the market open, the bank reported a better-than-expected annual pre-tax profit of $29.91 billion.
European stocks opened on a positive note after the region’s stock exchanges closed higher on Tuesday as investors assessed the new global trading environment after President Trump’s latest tariff measures. President Trump said in his State of the Union address Tuesday night that he believes his tariffs will replace income taxes.
“Over time, I believe that foreign-imposed tariffs, as they were in the past, will effectively replace the modern income tax system, removing a tremendous economic burden from the people I love,” the president said.
U.S. stock futures rose slightly on Tuesday night ahead of Nvidia’s important earnings report, which came at a time when investors were recalibrating their lofty valuations of tech stocks and becoming increasingly skeptical of hyperscalers’ expensive AI capital spending.
In the Asia-Pacific market, Korean and Japanese stocks hit record highs overnight.
— CNBC’s Garrett Downs contributed to this market report.
