LIVE MARKETS-Before the bell: Defence and renewables eyed in Europe

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BEFORE THE BELL: DEFENCE AND RENEWABLES EYED IN EUROPE

European shares were set for a steady start on Tuesday as traders weighed upbeat news for Nvidia - after U.S. President Donald Trump said the company would be allowed to export its top H200 chips to China - against typical pre-Fed caution.

Futures on the EuroSTOXX, DAX and FTSE indices were trading between flat and a rise of 0.1%, while contracts on the S&P 500 advanced 0.1%. Nvidia shares gained over 2% in Frankfurt. Trump added that the U.S. would collect a 25% fee on such sales.

Defence stocks .SXPARO could also get an early lift from supportive newsflow on military orders, with Bloomberg reporting that German lawmakers are set to approve procurement contracts worth a record 52 billion euros next week.

As a result, shares in Rheinmetall RHMG.DE, Hensoldt HAGG.DE and Renk R3NK.DE were seen rising between 2% and 4%.

Renewable energy names could also be in demand after Bloomberg reported that a U.S. federal judge ruled Trump's ban on new wind projects illegal. Orsted ORSTED.CO and Vestas VWS.CO shares rose 4% and 2.5%, respectively, on Tradegate.

Meanwhile, activist investor Ananym Capital has taken a stake in Siemens Energy ENR1n.DE, urging management to review its struggling wind division.

Elsewhere, Thyssenkrupp TKAG.DE said it expects to swing to a net loss of up to 800 million euros in 2026, citing restructuring provisions at its steel unit.

British American Tobacco BATS.L expects 2026 trading to come in at the lower end of its mid-term targets as the company grapples with regulatory hurdles and stiff competition.

(Danilo Masoni)

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