Europe close: Stocks modestly higher after Trump announces new tariffs

24th Feb 2026 16:18

(Sharecast News) - European shares closed modestly higher on Tuesday as investors digested the latest shift in US tariff policy from president Donald Trump and assessed a raft of economic data on both sides of the Atlantic.

The pan-European Stoxx 600 rose 0.23% to 629.14.

Germany's DAX edged down 0.02% to 24,986.25, France's CAC 40 gained 0.26% to 8,519.21 and the FTSE 100 slipped 0.04% to 10,680.59.

"Most global stock indices recovered despite mixed economic data while cryptocurrencies stayed under pressure amid investor fatigue," said Axel Rudolph, chief technical analyst at IG, highlighting that equity markets had steadied despite persistent cross-asset volatility.

Markets were focussed on Washington after Trump imposed a 10% blanket levy on all imports under Section 122 of the 1974 Trade Act, following last Friday's Supreme Court ruling that his so-called "emergency" tariffs were illegal.

Although he had threatened a 15% rate as permitted under the executive order authorising the new charges, the levy came into effect at 10% overnight in Washington.

A memo from US Customs and Border Protection confirmed that "Temporary Section 122 Duties" would apply "an additional 10% ad valorem duty on imported articles of every country for a period of 150 days, unless specifically exempt."

The measure allows the president to impose tariffs for up to 150 days without congressional approval.

On Monday, the European Union suspended ratification of the trade deal struck with the US last July for the second time in a month, after previously freezing and unfreezing the agreement amid Trump's threat to take over Greenland.

The deal had provided for 15% blanket tariffs on EU imports, incorporating earlier levies.

Investors were also looking ahead to Trump's State of the Union address later on Tuesday for further clarity, after he warned trade partners not to "play games" over existing agreements.

Joshua Mahony, chief market analyst at Scope Markets, said that, "Coming off the back of yet another shift in the tariff rates, we will be watching for any commentary over whether the new 15% blanket rate helps or hinders the margins".

New car sales fall in Europe

In economic data, new car sales across the European Union fell to their lowest level in five months in January.

Passenger vehicle registrations totalled 799,625, down 17.0% from 963,319 in December and 3.9% lower than January 2025, marking the first year-on-year monthly decline since June, according to the European Automobile Manufacturers' Association.

Germany and France both recorded annual falls of 6.6%, while sales dropped 16.2% in Italy and 33.8% in Spain.

Battery-electric vehicles accounted for 19.3% of new sales, up from 14.9% a year earlier, while hybrid-electric cars increased their share to 38.6% from 34.9%.

Plug-in hybrids rose to 9.8% from 7.4%.

By contrast, petrol cars' share declined to 22% from 29.5% and diesel fell to 8.1% from 10%.

The ACEA said hybrid-electric vehicles were now the most popular power type, with plug-in hybrids consolidating their position and underlining "the importance of a technology-neutral pathway to decarbonisation".

In the UK, registrations fell 1.5% month-on-month to 144,127, but were 3.4% higher than a year earlier.

UK retail sales also showed weakness.

The Confederation of British Industry said its retail sales volumes balance for the year to February fell to -43 from -17 in January, as wet weather kept shoppers at home.

Sales for the time of year were judged poor at -16, little changed from -15 in January.

Online sales volumes, however, grew at the fastest pace since April 2021, with a balance of 43.

Overall sentiment remained subdued at -34, though retailers expected a modest improvement next month, with sales volumes forecast to decline at a slower pace, at -17, and to fall short of seasonal norms to a lesser extent, at -9.

Martin Sartorius, the CBI's lead economist, said retail sales volumes had fallen sharply, with some firms citing wet weather, while soft demand and elevated costs continued to weigh on sentiment and investment plans.

Chancellor Rachel Reeves is due to deliver her Spring statement next Tuesday.

Across the Atlantic, US consumer confidence improved more than expected in February.

The Conference Board index rose to 91.2 from an upwardly revised 89.0 in January, above expectations of 87.0.

Its present situation index dipped 1.8 points to 120.0, while the expectations index climbed 4.8 points to 72.0.

Chief economist Dana M Peterson said confidence had ticked up as pessimistic expectations eased, although the measure remained well below its four-year peak of 112.8 reached in November 2024.

Mandatum tumbles, ConvaTec in the green

In equities, Mandatum tumbled 9.08% after private equity firm Altor sold 35 million shares in the Finnish asset manager at a 7% discount.

MTU Aero Engines fell 6.64% despite guiding for 2026 revenue and profit broadly in line with forecasts, citing sustained high demand for engine maintenance services.

Standard Chartered slipped 1.46% after reporting a 16% rise in full-year pre-tax profit to $6.96bn, below expectations, although net interest income rose 1% to $11.2bn, beating a consensus estimate compiled by LSEG.

On the upside, ConvaTec Group jumped 10.4% after the UK medical products company lifted its medium-term organic revenue growth target, pointing to a strengthening product pipeline.

Reporting by Josh White for Sharecast.com.