European stocks edge higher; trade tariffs, consumer prices in focus

Investing.com - European stock markets edged higher Tuesday, rebounding after the previous session’s losses as investors anxiously await the announcement of U.S. President Donald Trump’s trade tariffs, as well as regional inflation data.

At 02:02 ET (07:02 GMT), the DAX index in Germany climbed 0.6%, the CAC 40 in France gained 0.4% and the FTSE 100 in the U.K. rose 0.6%. 

On trade tariffs watch 

Global markets, and European investors are no exception, are taking a deep breath ahead of Trump’s "Liberation Day" tariff announcement, set originally for April 2, but could occur as early as later this evening.

Trump is set to announce his plan for reciprocal tariffs, which he has threatened to levy against countries running persistent trade imbalances with the United States.

The U.S. president said late Monday he would be “very kind” to trading partners, but added that reciprocal action is needed because the world’s biggest economy has been “ripped off by every country in the world.”

The main European indices closed sharply lower Monday, with the German DAX index dropping 1.3%, after a Wall Street Journal report indicated that these tariffs could be heftier than first envisaged. 

Eurozone consumer prices due 

Back in Europe, there are a lot of economic numbers to study to gauge the health of the eurozone economy, including the monthly jobless rate, regional manufacturing activity data and especially March consumer prices.

The March eurozone CPI index is expected to fall to 2.2% on an annual basis, from 2.3% the prior month, but a surprise to the downside is possible given German inflation fell more than expected in March.

The ECB has cut interest rates six times since June, but has provided few signals about its next move since the most recent reduction of its key deposit rate to 2.5% at the March meeting. 

The next rate decision is due on April 17.

Lufthansa expects positive 2025 

In the corporate sector, German airline Lufthansa (ETR:LHAG) stated it has not experienced a decline in bookings to and from the United States despite a stricter border policy under President Donald Trump.

CFO Till Streichert said in an interview that the market environment for 2025 was positive, especially in the North Atlantic, adding he expected a "significant improvement in earnings for the group".

Mercedes-Benz (OTC:MBGAF) is building up inventory levels in the U.S. at the wholesale level and at dealer lots to get ahead of tariffs, executives told analysts on a call on Monday.

Crude edges higher 

Oil prices edged higher Tuesday after President Trump threatened to impose secondary tariffs on Russian crude and attack Iran, though worries that trade tariffs could hit global growth capped gains.

The benchmarks settled at five-week highs a day earlier.

Gold prices notched a new all-time high earlier Tuesday, boosted by bullion’s safe-haven appeal as market participants braced for the upcoming tariff announcements. 

The yellow metal has hit consecutive fresh record-highs in the last four sessions.