European stock markets relinquished their initial gains to finish with mixed results on Tuesday, as investors contemplated potential actions by the Federal Reserve following recent economic data, including today's producer price inflation report.
Anticipation grew around the more critical U.S. consumer price inflation figures, set for release on Wednesday.
However, political uncertainty, concerns over U.S. tariffs under the Trump administration, and inflationary pressures proved to be heavy influences. Market participants also digested earnings reports from various companies.
The pan-European Stoxx 600 dipped slightly by 0.08%. In the UK, the FTSE 100 fell by 0.28%, whereas Germany's DAX and France's CAC 40 increased by 0.69% and 0.2%, respectively. Switzerland's SMI remained unchanged.
In other European markets, Austria, Greece, Ireland, Poland, Portugal, Spain, and Sweden ended on a positive note. Conversely, Denmark, Finland, Iceland, Norway, Russia, and Turkiye saw declines, while Belgium and the Netherlands concluded the day flat.
In the UK market, Persimmon was among the top performers, rising 5.5% due to a 7% boost in home completions and upbeat profit expectations. Other gainers, with increases ranging from 1.5 to 3.6%, included Airtel Africa, Ashtead Group, St. James's Place, Pershing Square Holdings, Endeavour Mining, Informa, Fresnillo, Segro, IAG, and Pearson.
Ocado's stock surged over 9.5%, propelled by strong Christmas sales. Conversely, JD Sports Fashion plummeted 6.3% after lowering its profit forecast; the stock hit near five-year lows following the company’s announcement that pretax profit will likely fall 4% short of consensus.
BP fell approximately 2.5%, affected by the company’s warning of a fourth-quarter profit decrease between $100-$300 million, due to weaker refinery margins and reduced production.
Games Workshop declined by about 6%, while Next, ICG, GSK, Croda International, Diageo, Centrica, Berkeley Group Holdings, AstraZeneca, Entain, and Marks & Spencer decreased by 1.5 to 3.4%.
In Germany, Siemens Energy, Deutsche Bank, Commerzbank, Rheinmetall, BASF, Daimler Truck Holding, Infineon, SAP, and Deutsche Boerse posted gains of 1 to 3.6%. On the downside, Symrise and Sartorius both fell over 3%, Bayer dropped 2.2%, and Brenntag, Beiersdorf, Deutsche Post, and Qiagen lost between 1.2 to 2%.
In France, Michelin, Societe Generale, BNP Paribas, Credit Agricole, Teleperformance, Renault, Safran, Accor, and Veolia recorded gains ranging from 1 to 2.7%. However, Eurofins Scientific saw a 6% decline, with Kering closing nearly 3% lower and Sanofi and Edenred also experiencing significant losses.
