European markets returned from the long Easter weekend on a negative note, amid continuing jitters around the U.S. economy and global trade.
The pan-European Stoxx 600 index was 0.3% lower by 10:10 a.m. in London, with most sectors and all major bourses in negative territory. Tech stocks led regional losses, with the Stoxx Europe Technology index down 1.5% during early morning trade.
Concerns are lingering around the possibility of a global trade war erupting, with Beijing threatening on Monday to retaliate against countries that follow Washington's calls to isolate China.
That followed a sharp sell-off on Wall Street on Monday, which came after U.S. President Donald Trump doubled down on his pressure campaign on Federal Reserve Chair Jerome Powell.
Trump posted on Truth Social on Monday that the economy would slow if the Fed did not cut interest rates. In the latest of multiple recent posts calling out Powell by name, he called the Fed chief "Mr. Too Late" and a "major loser."
Trump hinted at Powell's "termination" last week, an unprecedented action that White House economic advisor Kevin Hassett said the president's team was currently studying. Powell has said he cannot be fired under law and intends to serve through the end of his term in May 2026.
Asia-Pacific markets were subdued overnight, tracking Wall Street's sell-off.
There are no major earnings or data releases from Europe Tuesday but traders will be keeping an eye on news and comment out of the IMF-World Bank Spring meetings in Washington this week, where the threat and fallout from U.S. President Donald Trump's tariffs regime is likely to dominate discussions.
— CNBC's Alex Harring contributed to this market summary
Biotage shares pop 56% after buyout bid from KKR
Stockholm-listed shares of Swedish biotech firm Biotage jumped 56.1% by 10:25 a.m. in London, after private equity giant KKR made a $1.2 billion bid to take over the company.
In a statement on Tuesday, KKR said it had made a cash offer to Biotage shareholders of 145 Swedish krona ($15.24) per share. The offer values the company at around 11.6 billion krona, or $1.2 billion.
Biotage's Board of Directors has recommended that shareholders accept the offer.
KKR is currently Biotage's biggest shareholder, holding 17% of outstanding shares through Gamma Biosciences, which it owns and operates. Other shareholders include Vanguard, BlackRock and Norges Bank Investment Management, which controls Norway's $1.8 trillion sovereign wealth fund.
— Chloe Taylor
Healthcare stocks fall after Eli Lilly’s obesity drug trial results
Healthcare stocks were among the biggest losers on the Stoxx 600 on Tuesday, with the regional Stoxx Healthcare index down 1.5% by 9 a.m. London time.
Novo Nordisk and Zealand Pharma, both down by around 8.4%, tumbled to the bottom of the Stoxx 600 index after U.S. rival Eli Lilly posted positive results from a late-stage trial of its oral weight loss drug orforglipron.
— Chloe Taylor
Roche to invest $50 billion in the U.S. as pharma tariff threat lingers
A logo at the Roche Holding AG headquarters in Basel, Switzerland, on Thursday, Feb. 1, 2024.
Bloomberg | Getty Images
Swiss pharmaceutical giant Roche on Tuesday said that it would invest $50 billion in the U.S. over the next five years, amid concerns about the impact of possible new White House tariffs on pharma goods from abroad.
The investment will create more than 12,000 jobs, Roche said — 1,000 with the company, and the remainder to support new U.S. manufacturing capabilities.
Shares of Roche were 1.2% lower at 8:43 a.m. in London.
European currencies rally as dollar continues to waver
The euro was around 0.2% higher against the dollar by 7:08 a.m. in London, trading at $1.154.
Meanwhile, the British pound gained almost 0.3% against the greenback to trade at $1.341, and the Swiss franc was 0.1% higher.
The U.S. dollar has been on a largely downward trajectory since U.S. President Donald Trump's so-called liberation day tariffs sparked widespread market volatility earlier this month, even after the levies were paused for 90 days for most countries.
— Chloe Taylor
As the dollar falters, the world’s central banks tread a tightrope
U.S. dollar banknotes
Jose Luis Gonzalez | Reuters
The dollar has been sliding and the ripple effect on other currencies has brought a mix of relief and headache to central banks around the world.
Uncertainty about U.S. policymaking has led to a flight out of the U.S. dollar and Treasurys in recent weeks, with the dollar index weakening more than 9% so far this year. Market watchers see further declines.
According to Bank of America's most recent Global Fund Manager Survey, a net 61% of participants anticipate a decline in the dollar's value over the next 12 months — the most pessimistic outlook of major investors in almost 20 years.
— Lee Ying Shan
European markets: Here are the opening calls
European markets are expected to open from the long Easter weekend on a positive note, expected to open higher across the board.
The U.K.'s FTSE 100 index is expected to open 60 points higher at 8,254, Germany's DAX up 253 points at 21,064, France's CAC 81 points higher at 7,241 and Italy's FTSE MIB 441 points higher at 34,967, according to data from IG.
There are no major earnings or data releases from Europe Tuesday but traders will be keeping an eye on news and comment out of the IMF-World Bank Spring meetings in Washington this week, where the threat and fallout from U.S. President Donald Trump's tariffs regime is likely to dominate discussions.
— Holly Ellyatt
English (US)