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China imposes tariffs on US imports triggering sell-off in European markets

European markets experienced a significant sell-off on April 4, 2025, following China's announcement of 34% retaliatory tariffs on US imports, raising fears of a global trade war. Major UK banks and global mining companies saw sharp declines, with Barclays, NatWest, and Lloyds down over 7%. The oil price also plummeted to its lowest since August 2021, prompting Goldman Sachs to lower its forecasts for crude prices amid escalating tariff tensions. Defensive stocks like SSE and British American Tobacco managed to rise amidst the turmoil.

ubs rates diageo as buy amid us tariff concerns

UBS has maintained a "Buy" rating on Diageo with a target price of 2920 Pence, citing lower-than-expected impacts from U.S. tariff announcements on imported spirits. Analyst Sanjeet Aujla estimates a potential 2% hit to Diageo's EBIT if tariffs are fully applied, with Campari and Remy Cointreau facing greater challenges.

spirits sector shows resilience amid lower than expected tariff impacts

UBS reports that the impact of US tariffs on the spirits sector is less severe than anticipated, with imports from Mexico and Canada exempt under the Canada-US-Mexico agreement. The estimated effects on operating income vary by company, with Diageo facing a 2% impact and Rémy Cointreau 12%. Despite this, US spirits stocks have dropped 16% year-to-date, reflecting concerns over tariffs and declining consumer demand.

diageo receives mixed ratings as analysts weigh growth potential and market trends

Diageo (NYSE: DEO) has received an upgrade from Deutsche Bank from a "sell" to a "hold" rating, with analysts raising the price target to $129. The stock currently holds an average rating of "Hold" and has seen significant institutional investment, with hedge funds increasing their stakes substantially in the last quarter. Diageo's market cap stands at $60.54 billion, with shares trading around $108.83.

Deutsche Bank upgrades Diageo stock rating to hold amid market challenges

Deutsche Bank has upgraded Diageo PLC's stock rating from "Sell" to "Hold," maintaining a price target of GBp20.20, despite the stock's 42% decline since June 2022. Analysts suggest Diageo is undervalued, with targets ranging from $100 to $144, while acknowledging near-term risks and structural challenges. Barclays and Bernstein have also provided positive outlooks, with Barclays adjusting its target to GBp26.60 and Bernstein maintaining an Outperform rating at GBP28.80, highlighting strong brand performance amid market uncertainties.

early tariffs impact markets winners and losers in various sectors

The recent U.S. tariffs on Canada, Mexico, and China have created significant market volatility, with automakers like General Motors and Ford facing losses due to increased costs on vehicles produced in Mexico. Conversely, stocks linked to precious metals, such as Newmont Corporation and Barrick Gold, may benefit amid rising gold prices. The tech sector, including giants like Apple and Nvidia, is also bracing for potential impacts from tariffs on Chinese imports.

European stock markets recover as UBS shares decline amid tariff concerns

European stock markets rebounded on Tuesday, with the EuroStoxx 50 rising 0.89% amid easing tensions over US tariffs, particularly after the suspension of tariffs on Mexico and Canada. However, the Swiss market struggled, primarily due to a 7.1% drop in UBS shares, overshadowing positive quarterly results. In contrast, BNP Paribas saw a 4.2% increase following better-than-expected earnings, while Ferrari's shares surged 8.0% on strong quarterly results.

European stock markets recover as UBS shares decline amid tariff concerns

European stock markets rebounded on Tuesday, recovering some losses amid easing tensions over US tariffs, particularly with Mexico and Canada. The German index rose 0.89%, while the Swiss market fell 0.57%, largely due to a 7.1% drop in UBS shares despite strong annual results. Car manufacturers like Ferrari saw gains, with shares jumping 8.0% after exceeding quarterly expectations.

european markets rebound as us tariff tensions ease and company results vary

European stock markets rebounded on February 4, 2025, with the EuroStoxx 50 rising 0.89% amid easing tensions over US tariffs, particularly after the suspension of tariffs on Mexico and Canada. However, the Swiss SMI fell 0.57%, primarily due to a 7.1% drop in UBS shares, despite the bank's strong annual results. In contrast, BNP Paribas saw a 4.2% increase following better-than-expected quarterly figures, while Ferrari's shares surged 8.0% on strong operating results.

european markets struggle amid customs uncertainty and weak banking performance

The ongoing tariff dispute initiated by the US continues to create uncertainty in European markets, with the EuroStoxx 50 showing slight recovery despite a weak start. UBS shares fell by around 6 percent despite positive quarterly results, influenced by concerns over capital adequacy regulations. Meanwhile, BNP Paribas saw a gain of over 2 percent, while Vodafone's shares dropped more than 7 percent due to worries about its German operations.
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