European bourses retreated slightly on Tuesday as market participants evaluated the contours of a revised U.S. trade policy and parsed a fresh batch of company earnings. At 03:05 ET (08:05 GMT) the German DAX was down 0.1%, France’s CAC 40 fell 0.2% and the United Kingdom’s FTSE 100 slipped 0.2%.
Investors said the evolving trade picture and corporate newsflow jointly shaped sentiment across equity markets early in the week.
New tariff structure from Washington
The U.S. administration has activated a revised global tariff regime set at a 10% level after a Supreme Court ruling removed much of the earlier levy framework. U.S. Customs and Border Protection communicated the new 10% rate through its messaging service, while media reports indicated the White House was working toward lifting the duty to 15% - the level President Trump settled on over the weekend in response to the court decision.
Market participants are debating what the new tariff schedule means for previously negotiated trade deals. A European Union assessment cited in market reports concluded that the revised U.S. tariff policy would raise levies on some EU exports beyond the limits allowed under existing trade accords.
The tariff issue was expected to feature in President Trump’s State of the Union address to Congress later in the day, with the president warning trade partners not to "play games" by withdrawing from recently agreed deals.
Corporate earnings keep traders engaged
Company results across Europe provided additional impetus for trading decisions.
- Standard Chartered (STAN) reported a 16% increase in full-year pretax profit, driven by strong performances in its global banking and wealth divisions. The London-listed lender also unveiled a $1.5 billion share buyback plan and raised its full-year dividend by 65% compared with the prior year.
- Telefonica (TEF) posted a fourth-quarter net loss after recording €2.8 billion in restructuring charges tied to its portfolio overhaul and exits from several Latin American markets. Those one-off charges outweighed improvements in operating performance for the period.
- Fresenius Medical Care (FMEG) reported a sharp rise in fourth-quarter operating income, with management citing accelerating cost reductions and beneficial reimbursement dynamics as key drivers.
- Croda International (CRDA) said adjusted earnings were higher for 2025, supported by solid growth in its Consumer Care and Life Sciences divisions.
These announcements influenced investor appetite for stocks in banking, telecoms, healthcare and specialty chemicals, with the mix of one-off charges and recurring operational improvements prompting differentiated reactions across sectors.
Autos and registrations
The European auto industry drew attention after data from the auto lobby ACEA showed new-car registrations in the EU falling year-on-year in January for the first time since June. Total EU new-car registrations declined 3.9% in January. Battery-electric vehicles (BEVs) extended their share of the market to 19.3% from 14.9% a year earlier, while hybrid-electric vehicles (HEVs) remained the most common powertrain, accounting for 38.6% of registrations. Petrol and diesel models continued to lose market share.
Oil prices climb near seven-month highs ahead of talks
Crude futures moved upward on Tuesday, with Brent crude rising 0.3% to $71.33 a barrel and U.S. West Texas Intermediate up 0.4% at $66.55 a barrel. Both contracts were trading at levels around those seen in early August 2025.
Markets noted an upcoming third round of U.S.-Iran nuclear talks scheduled for Thursday in Geneva. The negotiations contributed to investor concern about geopolitical risk, with commentary noting an elevated worry over the potential for military escalation as the U.S. aims to halt Iran’s nuclear program.
Market implications
Traders navigated a combination of policy uncertainty from the U.S. tariff change, company-specific earnings that ranged from one-off restructuring costs to recurring profit gains, softer auto registrations, and oil-market sensitivity to geopolitical developments. The interplay of these factors produced a cautious tone across European equity indices on the session.