LONDON — European stocks edged lower Tuesday as investors await Washington’s response to Iranian peace proposals and react to results from several regional companies.
The pan-European Stoxx 600 was down 0.1% shortly after trading began, while oil prices rose early in trading.
United Kingdom FTSE100 The index was down 0.1% as of 8:10 a.m. in London (3:10 a.m. ET), with Germany DAX down 0.2%, that of France CAC40 down 0.3%. Italy MIB FTSE was, however, up 0.5%.
The winnings come from Novartis, Airbus, P.A. And Barclays Tuesday.
Barclays shares fell 2.7% after the British lender revealed it had suffered a £200 million ($270 million) private credit loss resulting from its exposure to troubled property lender Market Financial Solutions.
The British lender reported first-quarter pre-tax profit of £2.81 billion on Tuesday, up 3% from last year’s £2.72 billion. Its CET1 ratio stands at 14.1%. It also announced a £500 million share buyback to follow on from an ongoing £1 billion program once completed. In total, Barclays intends to return more than £15 billion of capital to shareholders between 2026 and 2028.
Investors will evaluate the news announced by the US president Donald Trump and his national security team discussed Iran’s proposal to reopen the Strait of Hormuz if the United States lifts its blockade and the war ends, White House press secretary Karoline Leavitt confirmed Monday.
The proposal would postpone negotiations on Tehran’s nuclear ambitions until a later date, Axios And The Associated Press reported earlier in the session.
It is unclear whether Trump, who has promised not to lift the blockade until a deal with Iran, will be “100% completed”, welcomed the reported offer to end the two-month-old war. Oil prices rose slightly overnight as uncertainty persisted over the war’s outcome.
Learn more
In business news, German biotech giant Bayer took to the U.S. Supreme Court on Monday to try to end thousands of lawsuits over its Roundup herbicide.
Bayer acquired Roundup maker Monsanto for $63 billion in 2018 and has faced years of litigation since striking the deal, amid allegations that glyphosate, an ingredient in the weedkiller, caused health problems including cancer.
The justices were reportedly divided after hearing arguments at Monday’s hearing, in which Bayer presented its appeal against a Missouri court’s $1.25 million award to a man who said years of exposure to Roundup caused his diagnosis of non-Hodgkin’s lymphoma.
Activists from the Make America Healthy Again, or MAHA, movement gathered outside the court Monday to protest Bayer.
Swiss drug manufacturer Novartis released its first quarter results on Tuesday, with group operating profit down 12% on an annual basis to $4.9 billion.
It fell below the $5.3 billion expected by analysts surveyed by LSEG.
British oil major P.A. also reported first quarter result Tuesday, as the company’s profits for the quarter more than doubled and exceeded expectations.
Learn more
Global market attention will also focus on central banks this week, with the US Federal Reserve, European Central Bank and Bank of England all due to hold crucial meetings as the war upends expectations for inflation and growth.
The Fed’s policy decision Wednesday could mark Jerome Powell’s final meeting as chair before Kevin Warsh takes office in May. The Ministry of Justice has decided to abandon criminal investigation in Powell on Friday, forcing Senator Thom Tillis to end Warsh’s confirmation block.
The ECB and BOE both release their latest monetary policy decisions on Thursday, with economists expecting central banks to maintain their benchmark interest rates at their respective meetings this month. However, central banks are expected to leave the door open to rate hikes later this year.
— Kevin Breuninger of CNBC contributed to this market report.
