European equities edge higher as telecoms gain and autos fall on tariff threat

European indices start week mixed

Shortly after 8:00 a.m. in London, the pan-European Stoxx 600 was up 0.1%. Germany’s DAX also gained 0.1%, while Italy’s FTSE MIB outperformed with a 0.4% rise. France’s CAC 40 slipped almost 0.1%. The U.K.’s FTSE 100 was closed for the early spring bank holiday.

Most regional sectors traded in positive territory. Telecoms led sector gains, advancing 1.2%. Nokia was a standout performer, surging 7% in early trading. The move extended the Finnish company’s year-to-date gains to more than 100%, following Inseego’s announcement on Thursday that it would acquire Nokia’s fixed wireless access business.

Autos slide on new U.S. tariff threat; oil prices ease

European automakers fell 1.6% in early trading after U.S. President Donald Trump said Friday he would increase tariffs on cars and trucks from the European Union to 25%. The European Commission stated it was keeping its options open regarding its response.

Within the sector, auto parts maker Continental was the weakest performer on the Stoxx 600, dropping 5.2% in morning trade. Mercedes Benz shares declined 1.9%, while Volkswagen traded 1.7% lower. The tariff threat comes despite a Supreme Court ruling in February that struck down large parts of Trump’s tariff agenda.

In parallel, President Trump unveiled a new initiative, “Project Freedom,” aimed at assisting ships unable to pass through the Strait of Hormuz. The plan could involve 15,000 troops, guided missile destroyers, and 100 aircraft to guide commercial vessels through the strategic shipping channel.

Oil prices moved lower in early trading. Brent crude slipped 0.8% to $107.38 a barrel, while West Texas Intermediate fell 0.84% to $101.10.

FAQ

Which European stock indices moved the most in early trading?
Italy’s FTSE MIB led gains with a 0.4% rise, while France’s CAC 40 was down almost 0.1%. Germany’s DAX and the pan-European Stoxx 600 both increased by 0.1%.

Why did European automaker stocks decline?
European automakers fell 1.6% after U.S. President Donald Trump announced plans to raise tariffs on cars and trucks imported from the European Union to 25%.

What drove Nokia’s share price higher?
Nokia’s shares rose 7% after Inseego said on Thursday it would acquire Nokia’s fixed wireless access business, taking Nokia’s gains to more than 100% since the start of the year.

How did oil prices react to developments in the Middle East?
Despite the announcement of “Project Freedom” to support shipping through the Strait of Hormuz, oil prices edged lower, with Brent crude down 0.8% to $107.38 a barrel and West Texas Intermediate down 0.84% to $101.10.