LIVE MARKETS-Before the bell: tariffs, chips and earnings

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BEFORE THE BELL: TARIFFS, CHIPS AND EARNINGS

European shares were set for a cautious start on Thursday, as President Donald Trump's higher tariff rates on dozens of trading partners, including Switzerland, took effect, while rate watchers turned their focus to a potentially divided policy meeting at the Bank of England.

SMI index futures in Zurich rose 0.2%, slightly lagging EuroSTOXX50 and DAX contracts, which were up 0.4%.

FTSE futures steadied ahead of a BoE meeting expected to deliver a fifth rate cut in 12 months, though inflation concerns are likely to split policymakers. Some UK stocks go ex dividend.

Chip companies such as Infineon IFXGn.DE and STMicro STMPA.PA were in focus after Trump announced a 100% tariff on imported semiconductor chips. However, companies committed to building in the U.S. were exempt, helping lift shares in iPhone maker Apple AAPL.O, which pledged an additional $100 billion American investment.

Elsewhere, earnings dominated, with attention again on the impact of new U.S. trade levies.

In Asia, Toyota cuts its annual profit estimate, flagging a $9.5 billion tariff hit, while Sony raised its outlook, expecting a smaller impact from the trade war.

In Europe, Rheinmetall RHMG.DE missed sales expectations, sending shares in the defence darling down 3% on Tradegate. "Overall a weak release... with orders somewhat soft at €2.6bn (and) sales 4% below expectation," writes Jefferies.

Siemens SIEGn.DE reported in line, though the weakening dollar weighed. Belgian bank KBC KBC.BR raised its annual net interest income guidance.

(Danilo Masoni)

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