LIVE MARKETS-Europe before the bell: Ukraine, tariffs, earnings in focus as futures inch up

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EUROPE BEFORE THE BELL: UKRAINE, TARIFFS, EARNINGS IN FOCUS AS FUTURES INCH UP

European equity futures are a touch higher on Thursday, as markets look to recover from an afternoon sell-off the day before that saw the STOXX 600 .STOXX drop 0.9%, its biggest one-day drop this year.

Futures on the pan-continental benchmark FXXPc1 are up around 0.25%, while those on the blue-chip Euro STOXX 50 STXEc1 are up a similar amount.

Markets remain jittery around headlines on Ukraine and U.S. import tariffs.

On Wednesday, U.S. President Trump said he would announce fresh tariffs over the next month or sooner, adding lumber and forest products to previously announced plans.

On Ukraine, Jefferies economist Mohit Kumar believes that whichever way a peace deal is agreed, it is clear Europe will need to increase its defence spending.

"This ... should be positive for risky assets with sectors including defense, machinery and financials benefiting," he says.

On the earnings front, autos will be in focus after results from Renault RENA.PA and Mercedes-Benz MBGn.DE.

Europe's largest aerospace group Airbus AIR.PA reported 2024 earnings in-line with forecasts but flagged short-term production pressures.

British bank Lloyds LLOY.L recorded a 20% drop in annual profit, missing expectations as interest rate cuts hit lending margins.

(Samuel Indyk)

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