European stocks set to steam ahead at the open on Ukraine ceasefire hopes; U.S. inflation data ahead

3 weeks ago 15

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European markets are heading for a sharply higher open amid hopes that a ceasefire can be reached to pause the war in Ukraine.

The U.K.'s FTSE 100 index is expected to open 25 points higher at 8,512, Germany's DAX up 195 points at 22,511, France's CAC 69 points higher at 7,998 and Italy's FTSE MIB 354 points higher at 38,003, according to data from IG.

Investors in Europe will be keeping an eye on earnings from clothing giants Inditex and Puma, and from carmaker Porsche.

Market sentiment in the region was boosted Tuesday as talks between U.S. and Ukrainian officials in Saudi Arabia on Tuesday ended with Ukraine agreeing to an immediate 30-day ceasefire negotiated by the U.S. if Russia accepts the plan.

As part of the plan, the U.S. lifted its pause on military aid to the country, as well as intelligence-sharing. U.S. Secretary of State Marco Rubio said the ball was now in Russia's court as to whether a ceasefire would be reached.

Global markets will also be focused on the latest U.S. inflation print set to be released later in the trading session. Read CNBC's inflation preview here.

U.S. markets have been sent on a roller-coaster ride amid uncertainty around President Donald Trump's tariffs. A 25% duty on steel and aluminum imports went into effect on Wednesday.

CNBC's CONVERGE LIVE event kicks off in Singapore on Wednesday, with the two-day event featuring speakers and contributors from across the worlds of business, technology and politics.

On day one of the forum, we'll be featuring fireside chats and panels with business leaders including Bridgewater founder Ray Dalio and Salesforce CEO Marc Benioff and Alec Kersman, managing director and head of Asia-Pacific at Pimco, Ángela Pérez, chairperson and CEO of Cofides and Kamal Bhatia, president and CEO of Principal Asset Management.

Porsche revenue falls, slashes outlook for 2025

Luxury automaker Porsche AG reported its group sales revenue and operating profit fell in 2024, while slashing its outlook for 2025, citing a challenging economic environment.

The German auto giant reported that its group sales revenue fell to 40.1 billion euros ($43.6 billion) in 2024, down 1% from 40.5 billion euros in 2023. The company's operating profit also dropped 30% to 5.6 billion euros, compared with 7.3 billion euros in 2023.

The company said it will keep its dividend for 2024 the same as the previous year, with earnings per share at 3.95 euros.

The company said its earnings were affected by a tense market situation in China, disrupted supply chains, and a delay in the global ramp-up of electromobility.

"In view of the changed circumstances, we have adjusted our product strategy in all segments," Porsche CEO Oliver Blume said. "And we further developed our proven and successful Porsche strategy over the course of last year to make the company even more flexible, robust and high-performing."

Porsche warned its 2025 margin would hit only 10-12% in light of reduced vehicle sales and an increase in expenses. It expects sales revenue to reach roughly 39 billion euros to 40 billion euros in 2025.

— Sawdah Bhaimiya

Europe retaliates against Trump’s 25% tariffs on steel and aluminum imports

President of the European Commission Ursula von der Leyen speaks in Strasbourg, France, on March 11, 2025.

Frederick Florin | Afp | Getty Images

The European Union has reacted swiftly to U.S. President Donald Trump's 25% tariffs on steel and aluminum imports that came into effect Wednesday, retaliating with their own punitive counter-measures that it said were needed to protect consumers and businesses.

The White House confirmed the duties — which will affect Canada, Australia, the EU and others — late Tuesday, but said that Trump no longer planned to raise tariffs on the metals from Canada to 50%.

The EU responded swiftly, saying it would impose counter-tariffs on 26 billion euros ($28.33 billion) worth of U.S. goods starting in April.

Read the full story here.

— Holly Ellyatt

Rheinmetall sales surge 36% in 2024

Rheinmetall MAN Military Vehicle drives on the road on Nov. 20, 2024, in Donetsk Oblast, Ukraine.

Yan Dobronosov | Global Images Ukraine | Getty Images

German arms maker Rheinmetall on Wednesday said it expects 2025 sales to jump by 25-30% this year, amid expectations of "major high-volume orders from military customers" that could gain a further boost from a recent change in tack in European defense policy.

The company reported a 36% jump in consolidated sales in 2024, with sales in the defense business up 50%. Defense sales are expected to grow by 35% to 40% this year, Rheinmetall said.

Read the full story here.

— Chloe Taylor

Zara owner Inditex fourth-quarter results meet expectations but recent sales slow

Zara owner Inditex on Wednesday posted fourth-quarter sales in line with expectations, marking another year of solid growth for the fast fashion retailer even as recent sales show signs of slowing.

The Spanish retailer reported revenues of 11.21 billion euros ($12.2 billion) in the three-month period, matching the 11.2 billion euros forecast by LSEG analysts.

Net income for the quarter came in at 1.42 billion euros, also in line with analyst expectations.

Full-year sales rose 10.5% in currency-neutral terms to total 38.63 billion euros in 2024, just ahead of an anticipated 38.57 billion euros, while net income came in at 5.87 billion euros for the year, in line with forecasts. That compares with net sales of 35.9 billion euros and net income of 5.4 billion euros in 2023, which the company said were record highs.

The company, which also owns Pull & Bear, Bershka and Massimo Dutti, nevertheless pointed to a slight slowdown in first-quarter sales this year. Revenues were up 4% in currency neutral terms from Feb. 1 to March 10, versus 11% growth the year prior.

— Karen Gilchrist