Major European Markets Close On Firm Note

(RTTNews) - The major European markets closed on a firm note on Tuesday despite concerns over Trump's tariff threats, and a possible U.S. government shutdown. Investors digested a slew of regional economic data, and largely made cautious moves.

The Trump administration has imposed tariffs on imported lumber, kitchen furniture, and bathroom furniture made of wood, starting October 14, with further increases planned for January 1.

The pan European Stoxx 600 climbed 0.48%. The U.K.'s FTSE 100 gained 0.19%, Germany's DAX closed 0.54% up, and France's CAC 40 ended up by 0.57%. Switzerland's SMI advanced 0.86%.

Other markets in Europe closed on a mixed note. Belgium, Finland, Ireland, Netherlands, Spain and Sweden ended higher.

Austria, Czech Republic, Denmark, Iceland, Norway, Poland, Portugal and Turkiye closed weak, while Greece and Russia ended flat.

In the UK market, Airtel Africa gained nearly 5.5%. Reckitt Benckiser and GSK moved up 3.85% and 3.75%, respectively.

Melrose Industries, Rentokil Initial, JD Sports Fashion, Hikma Pharmaceuticals, Rolls-Royce Holdings, Beazley, Weir Group, Babcock International, Fresnillo, Severn Trent, Halma, United Utilities, St. James's Place, Marks & Spencer, 3i Group, Kingfisher and Intertek Group gained 1.5 to 3%.

Entain ended down by 3.53%. Pershing Square Holdings, BP, Antofagasta, Shell, Metlen Energy & Metals, Intercontinental Hotels Group and BT Group lost 1 to 2.5%.

Close Brothers drifted down by 2.3%. The company swung to a full-year loss of £122.4 million and withheld a final dividend for the year, citing ongoing uncertainty around the Financial Conduct Authority's review of motor finance commission arrangements.

Online fashion giant ASOS closed lower by 4.3% after warning that its annual revenue would miss market expectations.

In the German market, MTU Aero Engines climbed more than 4.5%. Merck, Fresenius, Scout24, Bayer, Fresenius Medical Care, Heidelberg Materials, Brenntag, Siemens and SAP gained 1 to 2%.

Daimler Truck Holding ended nearly 2% down. Adidas, Mercedes-Benz, Zalando, Rheinmetall and Continental lost 0.5 to 1%.

In the French market, Publicis Groupe gained more than 2%. Capgemini, Vivendi, Eurofins Scientific, Schneider Electric, Vinci, Safran, Thales and Danone climbed 1 to 1.8%.

TotalEnergies tumbled 2.8%. ArcelorMittal closed down by about 2.3%. Kering, Hermes International, Stellantis, Legrand and Credit Agricole lost 1.3 to 2%.

Data from Destatis showed Germany's retail sales dropped unexpectedly in August due to a fall in non-food retailing.

Retail sales logged a monthly fall of 0.2% in August, slower than a decrease of 0.5% seen in July, the data showed. Sales were expected to rebound 0.6%.

Destatis said food sales gained 0.6%, while non-food sales declined 1% from July.

On a yearly basis, retail sales growth eased to 1.8% from 2.9% in the previous month.

In nominal terms, retail sales increased 0.1% month-on-month and advanced 3.2% from the previous year.

Germany's import prices declined by 1.5% year-on-year in August, following a 1.4% fall in the previous month. This marked the fifth consecutive month of falling import prices and the sharpest drop in the current sequence. On a monthly basis, import prices declined by 0.5% in August, slipping further from the 0.4% fall recorded in the previous month.

Meanwhile, Germany's seasonally adjusted unemployment rate stayed at 6.3% in September, matching market forecasts. This is the highest level since September 2020, signaling ongoing weakness in the labor market.

Data from INSEE showed France's consumer price inflation accelerated in September to the highest level in eight months amid a rise in costs for services, according to a provisional estimate.

A separate official report showed that producer prices decreased slightly in August after rising for the first time in six months in July.

The consumer price index climbed 1.2% year-over-year in September, faster than the 1% rise in the previous month. Economists had expected inflation to rise to 1.3%/ Further, this was the highest inflation rate since January, when prices rose 1.7%.

On a monthly basis, consumer prices fell 1% in September, reversing a 0.4% rise in August.

EU-harmonized inflation climbed to 1.1% from 0.8% in the prior month. Monthly, the HICP showed a decrease of 1.1% versus a 0.5% gain in August.

A report from the Offie for National Statistics said the UK economy grew at a slower pace in the second quarter as increases in services and construction were partially offset by the contraction in production.

Real gross domestic product expanded by an unrevised 0.3% in the second quarter, following a quarterly growth of 0.7% in the first quarter.

The dominant service sector grew 0.4% and construction output advanced 1%. Partially offsetting these gains, production fell 0.8%.

In the second quarter, real GDP was 1.4% higher than in the same period last year, data showed.

Real annual GDP in 2024 advanced 1.1%, which was unrevised from the previous estimate.

Another report from the ONS showed that the underlying current account deficit, excluding precious metals, widened to GBP 23.8 billion or 3.2% of GDP, in the second quarter.