European markets set for a shaky start amid Trump tariff threat

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European markets are heading for a mixed open Wednesday as investors continued to assess the potential impact of President-elect Donald Trump's plans to hike tariffs.

The U.K.'s FTSE 100 index is expected to open 5 points higher at 8,267, Germany's DAX down 21 points at 19,285, France's CAC down 39 points at 7,160 and Italy's FTSE MIB down 173 points at 33,150, according to data from IG.

Trump said Monday that one of his first acts in office would be to impose an additional 10% tariff on all Chinese goods entering the U.S., and threatened a 25% tariff on products from Mexico and Canada, ending a regional free trade agreement.

Economists have warned of the potential inflationary impact of Trump's fiscal plan, which could see the U.S. Federal Reserve cutting interest rates at a slower pace.

Overnight, Asia-Pacific markets were mixed Wednesday, following gains on Wall Street that saw the S&P 500 and the Dow Jones Industrial Average reach new intraday and closing records.

U.S. stock futures were little changed on Wednesday morning as traders await the release of the Fed's favorite inflation gauge: the personal consumption expenditures price index.

Earnings are set to come from Easyjet and data releases include German and French consumer confidence.

Aston Martin expects lower full-year core profit as delivery delays bite

The Aston Martin DB12 Goldfinger Edition is pictured during the 007 takeover of Burlington Arcade on October 29, 2024 in London, England.

Dave Benett | Getty Images Entertainment | Getty Images

British luxury carmaker Aston Martin on Tuesday forecast its annual core profit to fall short of 2023 levels as delivery delays in the ultra-exclusive Valiant models weigh on its margins.

The company expects its 2024 adjusted EBITDA to be in the range of 270 million pounds to 280 million pounds ($338.55 million - $351.09 million) compared to 305.9 million pounds last year.

The carmaker said it now expects to deliver only half of the 38 Valiant models by year end, previously guided to be the majority.

"We are already taking decisive actions to better position the Group for the future including a more balanced production and delivery profile in the coming quarters," CEO Adrian Hallmark said in a statement.

Aston Martin, which has been hit by persistent depressed demand in China and supply disruptions leading to manufacturing delays, had cut its production forecast by about 1,000 vehicles in September.

The Gaydon, UK-based company reported a smaller-than-expected third-quarter loss last month, aided by strategic steps taken to mitigate losses.

The company reiterated its focus on 2025 targets, including delivering about 2 billion pounds in revenue and targeted free cash flow generation. As part of the efforts to bolster its finances, Aston Martin also announced plans to raise about 210 million pounds through an equity and debt offering.

— Reuters

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