LIVE MARKETS-Europe before the bell: tariffs and earnings top of mind

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EUROPE BEFORE THE BELL: TARIFFS AND EARNINGS TOP OF MIND

European shares were set for a higher start on Thursday as investors largely ignored the latest tariff threats from the U.S. and awaited an announcement on the levies it will apply to the EU, one of its biggest trading partners.

On Wednesday, President Donald Trump announced the duty on Brazilian goods would increase to 50% from 10%, a shockingly high level for a country with a balanced U.S. trade relationship. The EU's trade chief Maros Sefcovic has said he hoped that EU negotiators could finalise their work soon.

EuroSTOXX50, DAX and FTSE futures rose 0.3-0.5%, following three days of gains in Europe and positive trading in Asia overnight. U.S. futures retreated slightly, a day after Nvidia NVDA.O briefly hit a $4 trillion valuation.

Investors were also gearing up for the start of the earnings season, which could offer the first meaningful insight into how Europe Inc is navigating a new era of trade volatility.

Luxury sports car manufacturer Porsche P911_p.DE said on Wednesday it expected a 300-million euro ($351.96 million) it to results as a consequence of absorbing U.S. import tariffs in April and May.

Meanwhile, Brussels is discussing with U.S. counterparts a range of measures aimed at protecting the bloc's auto industry from steep U.S. import duties, including tariff cuts and import quotas, according to industry sources and trade officials.

Despite the uncertainty, European shares have been strong. Banks .SX7P have reached a new multi-year high on Wednesday, and the German DAX .GDAXI index hit a new lifetime peak.

Still in earnings, chocolate maker Barry Callebaut BARN.S cut its annual volume guidance due to what it described as unprecedented market conditions in the cocoa bean market, as it reported nine-month results in line with market expectations.

Chip stocks were also to watch after TSMC 2330.TW, the world's largest contract chipmaker, reported Q2 revenue above market forecasts, as demand for its products leaps on surging interest in artificial intelligence applications.

(Danilo Masoni)

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