European Markets Open Mixed as Trump’s Second Term Begins

European stock markets opened Tuesday with mixed results as investors assessed the impact of newly inaugurated President Donald Trump and his initial executive orders. The pan-European Stoxx 600 was flat, while Germany’s DAX slipped slightly after reaching a record high.

The U.K.’s FTSE 100 opened up 0.05% at 8,531, Germany’s DAX edged higher to 21,004, France’s CAC 40 added 7 points to reach 7,740, and Italy’s FTSE MIB gained 44 points, hitting 36,326.

Orsted Shares Fall on U.S. Impairment
Shares of Danish energy giant Orsted plunged 15% after it disclosed a fourth-quarter charge of 12.1 billion Danish krone ($1.7 billion) linked to its U.S. offshore wind projects.

Trump’s Policies in Focus
Investors are closely watching the second Trump administration, particularly its stance on trade and tariffs. Trump announced on Monday plans for 25% tariffs on Canada and Mexico, set to take effect as early as February.

At the same time, European automakers Stellantis and BMW saw declines over fears of being affected by potential U.S. trade policies.

Spotlight on Davos
The World Economic Forum in Davos, Switzerland, remains a major focal point for global investors. Key speakers for the day include:

- Ursula von der Leyen, President of the European Commission, at 10:50 a.m. Davos time.
- Ding Xuexiang, China’s Vice Premier, at 11:20 a.m.
- German Chancellor Olaf Scholz and Ukrainian President Volodymyr Zelenskyy will address the forum in the afternoon.

Trump is also scheduled to deliver a keynote address to the forum via videolink on Thursday, with many anticipating comments on trade and energy policies.

U.K. Economic Data
Data released Tuesday showed private sector wages in the U.K. rose 6% in the three months to November, but payroll figures dipped by 0.1% in November compared to October. The mixed signals create uncertainty for the Bank of England, which is expected to cut rates three times in 2025.

Looking Ahead
As European markets digest Trump’s policy signals and major developments in Davos, investors are preparing for potential volatility ahead. Energy firms, automakers, and cross-border trade will remain key areas to watch as U.S.-Europe relations evolve under the Trump administration.