European stock markets experienced significant declines on Tuesday, largely influenced by the US's decision to impose tariffs on imports from China, Canada, and Mexico. The Stoxx Europe 600 index reported a drop of 2.20%, while Germany's DAX index fell sharply by 3.53%. The FTSE 100 index in London registered a loss of 1.27%, with France's CAC 40 experiencing a decrease of 1.85%, and the Swiss Market Index unable to escape the downward trend, closing down by 1.21%.
In terms of economic indicators, the euro area recorded a seasonally adjusted unemployment rate of 6.2% in January, consistent with the previous month's figure, but reflecting an improvement from 6.5% a year earlier, as reported by Eurostat, the statistical office of the European Union. The unemployment rate within the EU also held at 5.8%, mirroring the prior month’s rate and showcasing a decline from 6.1% over the same period last year.
Regional disparities were evident, with Spain and Sweden showcasing the highest unemployment rates at 10.4% and 8.9% respectively, in stark contrast to the lowest rates found in Czechia and Poland, both at 2.6%. On the corporate front, HSBC announced the appointment of Ian Stuart, the current Chief Executive of HSBC UK, to the newly established position of Group Customer and Culture Director.
Stuart will be reporting directly to Group Chief Executive Georges Elhedery. HSBC has initiated a search for Stuart's successor, signaling a transformative period in its leadership structure. In the oil and gas sector, British multinational BP is planning to appoint two new directors aimed at steering its renewed focus on oil and gas operations, as reported by the Financial Times, although a response regarding this from BP has yet to be received.
The automotive sector faced a turbulent trading day, with stocks plummeting significantly. In Frankfurt, shares of Continental and Daimler Truck fell precipitously by 12% and 7.8%, respectively. The losses extended to BMW, which dropped 5.9%, while Mercedes Benz, Volkswagen, and Porsche also reported declines of 4.8%, 4.1%, and 3.6%.
Meanwhile, in Paris, Stellantis saw a sharp drop of 10%, with Renault and Michelin following suit with decreases of 4.6% and 2.7%. Additionally, XBP Europe made headlines by signing a non-binding letter of intent to acquire Exela Technologies BPA, a notable provider of business automation solutions.
Lastly, Redwire proudly announced that its Belgian subsidiary, Redwire Space, has secured a contract from the European Space Agency to conceptualize a spacecraft designed for potential travel to Mars. Notably, financial details concerning this contract were not disclosed, indicating a forward-looking venture into space exploration..