European Stocks Update: Orsted Plunges, Avanza Surges, U.S. Tariff Concerns

European stocks experienced a slight increase on Tuesday, with the Stoxx 600 index rising by 0.19%. Offshore wind developer Orsted saw a significant decline of 14% after announcing a $1.7 billion loss related to its U.S. offshore wind turbine projects. In contrast, shares of Swedish online bank Avanza surged by 11.3% following a report of a full-year operating profit of 2.6 billion Swedish krona ($240 million), marking a 14% year-on-year rise.

Germany’s DAX index fell slightly after reaching a record high the previous day, while European automakers Stellantis and BMW each saw nearly a 2% drop amid concerns over potential U.S. tariffs. U.S. President Donald Trump, newly inaugurated, has threatened fresh tariffs and aims to “put America first.”

In the U.K., private sector wages increased by 6% in the three months to November, although payroll figures showed a 0.1% decline from October, indicating potential economic weakness. Lloyds Banking Group’s CEO projected three interest rate cuts by the Bank of England in 2025, aligning with market expectations.

At the World Economic Forum in Davos, Switzerland, some global leaders, including those from China and India, are notably absent, while Trump is scheduled to address participants via video link on Thursday. Additionally, Austria’s Raiffeisen Bank International plans to set aside funds following a Russian court’s ruling against it for 2 billion euros ($2.08 billion).

Source: CNBC