LIVE MARKETS-Europe before the bell: chips and defence for breakfast

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EUROPE BEFORE THE BELL: CHIPS AND DEFENCE FOR BREAKFAST

European shares were set for a soft start on Tuesday as caution grew ahead of Nvidia NVDA.O results this week and after US President Donald Trump ordered a restriction of Chinese investments in strategic areas such as chips, AI and aerospace.

EuroSTOXX50, DAX and FTSE futures were down 0.2-0.4%, with reports of China curbs dampening the mood and seen weighing on the region's chip stocks. Nasdaq contracts eased 0.2% following a negative close on Wall Street the day before, on concerns about future demand for Nvidia's pricey AI chips.

Defence was also in focus amid differences between Europe and Washington over their approach to Ukraine, and reports that Germany's chancellor-in-waiting Friedrich Merz has opened talks to quickly approve up to 200 billion euros ($209.36 billion) in defence spending.

Corporate news was also eyed, with more earnings releases in Germany, while Unilever ULVR.L said Hein Schumacher will step down and be replaced by finance chief Fernando Fernandez.

Cement maker Heidelberg Materials HEIG.DE expects operating profit to rise further after a record 2024, while dialysis specialist Fresenius Medical Care FMEG.DE reported Q4 results above market expectations.

In the UK, Smith+Nephew SN.L beat expectations for annual sales and profit, helped by a recovery in its U.S. knee and hip implant business, along with cost cuts.

(Danilo Masoni)

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