European markets assess the impact of Trump 2.0, and Davos in focus

LONDON – European stocks opened in mixed territory on Tuesday, as traders reviewed the first executive orders signed by new US President Donald Trump on Monday.

Pan-European Stokes 600 It opened flat, while it opened in Germany Dax It fell slightly after reaching a record high. while FTSE 100 index The Italian index opened 0.05% higher. FTSE MIB indicator and CAC 40 Both were in negative territory at 8.15am London time.

Orsted shares fell 15% after the company disclosed profits of 12.1 billion Danish kroner ($1.7 billion) in the fourth quarter tied to offshore wind turbine projects in the United States. Meanwhile, shares of European automakers Stellantis and BMW fell amid the threat of potential US tariffs.

Global investors will assess the potential impact of Trump’s second term in office after his inauguration as the 47th president of the United States on Monday. After the ceremony, Trump signed some of his first executive orders In front of an audience of 20,000 fans at Capital One Arena in Washington.

On the data front, private sector wages in the UK rose by 6% in the three months to November, compared to the previous year, the Office for National Statistics said on Tuesday. The agency also revealed that November payroll figures fell by 0.1% compared to October, indicating a weak labor market. Together the two data indicators give interest rate setters at the Bank of England a mixed picture of the state of the economy.

In Davos, Charlie Nunn, chief executive of Lloyds Banking Group, told CNBC’s Squawk Box Europe that the bank expects three interest rate cuts in 2025 from the Bank of England, in line with the interest rate swaps market. Lloyds is one of the largest mortgage lenders in the UK

Trump also said on Monday That a 25% tariff could be imposed on Mexico and Canada in early February.

In other news, investors in the European market will be watching World Economic Forum in DavosSwitzerland this week. The annual event, which attracts heads of government and business leaders from around the world, intensifies on Tuesday.

While some skip Davos – The leaders of China, India and a number of major European leaders will be absent this year – Trump is scheduled to address participants via video link on Thursday.

On Tuesday, there are a number of keynote speeches, with Ursula von der Leyen, President of the European Commission, scheduled to speak at 10:50am Davos time (9:50am London time). Shortly after, Deng Xuexiang, Vice Premier of the Chinese State Council, will deliver a keynote speech at 11:20 a.m.

Follow the World Economic Forum live blog on CNBC here

German Chancellor Olaf Scholz will address the forum at 2:00 pm local time, and Ukrainian President Volodymyr Zelensky will speak at 2:30 pm. The forum will serve as a crucial platform for the president to present the Ukraine case ahead of potential pressure from Trump to reach a ceasefire with Russia to end the war.

Later in the afternoon, Cyril Ramaphosa, President of South Africa, will deliver a keynote address at 3:45 pm Davos time.

Elsewhere, Austria’s Raiffeisen International Bank, the largest Western bank in Russia, said it would set aside money after a Russian court issued a judgment against it worth two billion euros ($2.08 billion).

There are no major earnings releases scheduled in Europe on Tuesday. Data releases include the UK unemployment rate for November and the ZEW European economic sentiment data.