Europe midday: Markets hold at record high as tariff uncertainty builds

(Sharecast News) - European stocks were flat on Tuesday with heightened concerns about an escalating trade war and the previous session's record high keeping a lid on risk appetite. The pan-European Stoxx 600 index was more or less unchanged at 545.58 by lunchtime in Europe, with most major indices across the continent trading within a narrow range. On Monday, the Stoxx 600 settled at an all-time closing high of 545.92.

Continuing to weigh on sentiment was the launch of 25% tariffs on US steel and aluminium imports, which came into force on Monday evening.

The latest protectionist measures come ahead of a string reciprocal tariffs that Donald Trump has promised to unveil in the coming days, targeting countries that already charge additional duties on American-made goods.

"European trade has kicked off on a relatively indecisive tone, with tariff fears casting a shadow over the bulls for the time being. Trump's promise that he will apply reciprocal tariffs today brings a high degree of uncertainty," said analyst Joshua Mahony from Scope Markets.

Market movers

Shares in sports betting and gaming group Entain dropped 10% after the revelation that chief executive Gavin Isaacs has left the UK company with immediate effect after just five months. Entain did not disclose a reason for the abrupt departure, but said that the decision was "by mutual agreement".

Also under pressure in London was housebuilder Bellway after reporting that it didn't experience a typical seasonal step-up in demand in the autumn due to rising mortgage rates. While the company reiterated full-year guidance, shares were down more than 4%.

French luxury goods giant Kering gave up earlier gains as investors digested fourth-quarter results. Revenues beat market forecasts, though sales at the struggling Gucci brand dropped 24%.

German travel and tourism group TUI fell after underwhelming with a 13% increase in first-quarter revenues and a rise in underlying earnings.

Also disappointing was UniCredit despite reporting strong fourth-quarter earnings, allowing the Italian bank to raise shareholder returns even as it prepared for a slight revenue decline in 2025.

Nordics-focused insurer Sampo was registering sharply lower in Helsinki after a four-for-one stock split came into effect.