A group gather in Palestine Square in the Iranian capital Tehran, staging a demonstration to support Iran’s drone and missile attacks on Israel on April 15, 2024.
This is CNBC's live blog covering European markets.
European markets closed lower on Tuesday as investors followed developments in the Middle East.
The regional Stoxx 600 index provisionally ended 1.6% lower with all sectors and major bourses in negative territory. Mining stocks led losses, down 3.1%, as banks fell 2.6%.
Telecoms stocks managed smaller losses of 1%, after Sweden's Ericsson posted better-than-expected first-quarter profit. Shares were up 1.8%.
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Geopolitical tensions are high following Iran's extensive drone and missile attack on Israel Saturday night. Israel has vowed to retaliate but has signaled that it could bide its time. Allies have called for cool heads, warning about the potential for a much bigger war in the region.
Asia-Pacific markets sold off as the world awaits Israel's response to Iran's air assault over the weekend. Most major markets in Asia lost about 2%. Data released Tuesday showed China's economy grew 5.3% in the first quarter from a year ago, more than the 4.6% growth expected by economists polled by Reuters.
On the European data front, U.K. unemployment rose to 4.2%, up from 3.9% a year ago, while regular wage growth excluding bonuses rose more than expected, by 6%.
Money Report
"The latest jobs report is a nuanced one, but we suspect most policymakers will read it as net-hawkish on the basis of those wage figures. At the margin, it moves the dial towards an August rate cut over June, though it remains a close call," ING Developed Markets Economist James Smith said in a note.
U.S. stocks were mixed on Tuesday. Attention stateside is on the big banks, after Morgan Stanley and Bank of America both beat on earnings estimates.
European markets close lower
European markets closed lower on Tuesday as investors monitored elevated geopolitical tensions in the Middle East.
The pan-European Stoxx 600 provisionally ended down 1.6%, with all sectors and major bourses in the red. Mining stocks led the losses, down more than 3.1%.
— Sam Meredith
Lagarde says ECB will cut rates soon, barring major shocks
European Central Bank President Christine Lagarde said barring any major shocks, the central bank is on course to cut interest rates in the near term.
"We just need to build a bit more confidence in this disinflationary process but if it moves according to our expectations, if we don't have a major shock in development, we are heading towards a moment where we have to moderate the restrictive monetary policy," Lagarde told CNBC's Sara Eisen on Tuesday.
The central bank on Thursday held interest rates steady for a fifth straight meeting and gave a clear signal that it could start cutting rates during its June meeting.
Read more on this story here.
— April Roach and Sam Meredith
Dow rises at open
The Dow kicked off Tuesday higher, on pace for its first positive session in seven.
The 30-stock index climbed 0.6% shortly after 9:30 a.m. ET. The S&P 500 traded around flat, while the Nasdaq Composite slipped 0.1%.
— Alex Harring
Oil prices fall for second day as U.S. expects limited Israel response to Iran attack
Crude oil futures fell for a second day Tuesday as the U.S. expects a limited response from Israel to an unprecedented air assault by Iran, reducing fears that the Middle East is on the verge of a broader regional war.
The West Texas Intermediate contract for May delivery lost 52 cents, or 0.61%, to $84.89 a barrel. The June Brent futures contract fell 49 cents, or 0.54%, to $89.61 a barrel.
Four U.S. officials told NBC News they expect an Israeli response to Iran's attack to be limited in scope and most likely to involve strikes on Iranian forces and their proxies outside Iran.
"Tensions are high, and either party's next moves are hard to predict, but all the significant signs point toward an easing of hostilities and restraint in the short term," said Jorge Leon, senior vice president at Rystad Energy, a consulting firm.
— Spencer Kimball
Sterling hovers around five-month low against the dollar
The British pound continued to trade at a 5-month low against the dollar following jobs data for the U.K.
At midday London time sterling was trading at 1.2444 against the dollar.
The U.K. unemployment rate increased more than expected between December and January, rising to 4.2% from 3.9%, according to data from the country's Office for National Statistics.
It comes ahead of inflation data, due Wednesday, which will be closely watched for hints as to when the Bank of England might start cutting interest rates.
— Katrina Bishop
Wise shares fall 8% on trading update
Shares of U.K.-based fintech Wise were down 8% at 10:20 a.m. in London after the company issued a trading update in which it said revenue grew 36% year on year to £277.2 million ($344.8 million) in the fourth quarter.
That was lower than the £316 million expected by analysts, according to FactSet data.
The company, which facilitates international money transfers, said active customers were up 29% to 7.9 million in the quarter.
— Jenni Reid
Europe stocks open lower
European stocks opened lower Tuesday, with the benchmark Stoxx 600 index down by 1.2% by 9 a.m. London time, its lowest level since March 7.
All sectors traded in the red. The U.K.'s FTSE 100, France's CAC 40 and Germany's DAX were all lower by 1.3%.
— Jenni Reid
Dr. Martens shares plunge 30% to all-time low, trading halted
Shares of Dr. Martens plunged 30% to a record low in early deals after the shoemaker issued an unscheduled trading update in which it flagged a challenging 2025 outlook and said its 2024 full-year results would be in line with estimates.
Trading in the company shares was temporarily suspended on the London Stock Exchange.
The firm also said CEO Kenny Wilson would step down in March 2025 and be replaced by Chief Brand Officer Ije Nwokorie.
In a Tuesday note, analysts at RBC flagged a negative sentiment on the stock and said markets would focus on the 2025 guidance in the short term.
— Jenni Reid
UK employment rate falls as wage growth remains robust
The U.K. employment rate fell through December and January, to 74.5% from 74.8% in the prior measured period, figures released by the national statistics office showed.
Unemployment rose for a third reading to 4.2%, up from 3.9% a year ago.
Wage growth excluding bonuses was 6% between December 2023 and February 2024, down slightly from 6.1% from November 2023 to January 2024 but higher than the reading expected by economists polled by Reuters of 5.8%.
"Overall, if it wasn't for the clear weakening in activity in the labour market we'd be a bit worried that the UK's disinflation process is grinding to a halt like in the US," Paul Dales, chief U.K. economist at Capital Economics, said in a note.
"But with employment falling sharply and the unemployment rate climbing, we suspect wage growth will continue to ease in the coming months. That may allow the Bank to cut interest rates in June, even if the Fed doesn't move until September."
— Jenni Reid
Ericsson posts profit beat
Swedish telecom firm Ericsson on Monday reported operating profit excluding restructuring charges of 4.3 billion Swedish kronor ($393.8 million), up 7% year on year and well ahead of analyst expectations in an LGEG poll of 1.7 billion kronor.
Organic sales fell 14%, with a 19% decline in its networks unit, which includes its 5G services.
The company said there's potential for sales to stabilize in the second half of the year in light of recent contract gains and the normalization of inventory levels in North America.
CEO Börje Ekholm told CNBC's "Squawk Box Europe" the company was focusing on its cost position and making sure it had a competitive product, which lay behind its decision announced last month to lay off around 1,200 workers.
Ekholm also said Ericsson was using artificial intelligence to help its complex 5G networks run better.
— Jenni Reid
Nasdaq Composite slides below its 50-day moving average, a first since November
The major indexes resumed their sell-off on Monday, and the Nasdaq Composite slipped below its 50-day moving average as the index dropped about 1.7%.
It was the first time the tech-heavy index slid below this key threshold since Nov. 3, 2023. If it closes below that level, it will be a first since Nov. 2, 2023. The index is up more than 30% in the past 12 months.
The 50-day moving average is a technical indicator that traders watch to assess short-term trading trends. A close below this level could signal an upcoming downtrend for an asset.
— Darla Mercado, Nick Wells
CNBC Pro: These 10 oil stocks are the most — and least — sensitive to price swings amid Iran-Israel tensions
Crude oil prices have been volatile in April amid heightened geopolitical risks.
CNBC Pro screened for stocks in the MSCI World Energy Index that are both highly correlated and inversely correlated with international benchmark Brent crude oil prices over the past week, month, and year.
CNBC Pro subscribers can read more here.
— Ganesh Rao
The oil market shrugged Iran's attack. What happens next depends on Israel
The oil market on Monday shrugged off Iran's weekend air assault against Israel with U.S. crude and the global benchmark both settling slightly lower.
The West Texas Intermediate contract for May lost 25 cents, or 0.29%, to settle at $85.41 a barrel. June Brent futures fell 35 cents, or 0.39%, to settle at $90.10 a barrel.
The market had already priced in the risk from an attack Iran had telegraphed for days beforehand, and traders breathed a sigh of relief after Israel and the U.S. intercepted nearly all the missiles fired.
What happens next depends on how Israel decides to respond.
"What is not priced into the current market, in our view, is a potential continuation of a direct conflict between Iran and Israel," Maximilian Layton, head of commodities research at Citi, told clients in a note. Oil prices could spike above $100 a barrel depending on how Israel responds to the attack, the analyst wrote.
— Spencer Kimball
CNBC Pro: Morgan Stanley names global ‘alpha’ stock ideas for April — and gives one over 30% upside
Asian markets have had a mixed start to the year — with investors looking keenly at India, Japan and increasingly China.
Looking ahead, those searching for pockets of opportunities in the region can look to Morgan Stanley's selection of "alpha" stocks. Alpha stocks refer to those with the ability to beat the market.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
European markets: Here are the opening calls
European markets are set to open lower Tuesday.
The U.K.'s FTSE 100 index is expected to open 87 points lower at 7,888, Germany's DAX down 214 points at 17,784, France's CAC 96 points lower at 7,938 and Italy's FTSE MIB down 422 points at 32,870, according to data from IG.
Earnings are set to come from Ericsson and LVMH. Germany's ZEW survey of economic sentiment will be released.
— Holly Ellyatt
