European markets close lower amid tariff threat; Aston Martin shares down 5.5% after profit warning

This was CNBC's live blog covering European markets.

European markets closed lower Wednesday as investors continued to assess the potential impact of President-elect Donald Trump's plans to hike tariffs and fresh U.S. inflation data.

The pan-European Stoxx 600 index closed down 0.2%, with all sectors in negative territory apart from telecoms, food and beverage, utilities and financial services.

Shares of Easyjet were up 1.5% at the open but later pared gains after the budget airline posted a 25% rise in full-year operating profit. The stock closed the day down 0.4%.

Shares of Just Eat Takeaway were 2.4% lower after the company announced it would delist from the London Stock Exchange next month.

Meanwhile, shares of Aston Martin fell 5.5% after the luxury carmaker issued another profit warning.

Global markets have traded mixed since Trump said Monday that one of his first acts in office would be to impose an additional 10% tariff on all Chinese goods entering the U.S., and threatened a 25% tariff on products from Mexico and Canada, ending a regional free trade agreement.

Economists have warned of the potential inflationary impact of Trump's fiscal plan, which could see the U.S. Federal Reserve cutting interest rates at a slower pace.

Overnight, Asia-Pacific markets were mixed Wednesday, following gains on Wall Street that saw the S&P 500 and the Dow Jones Industrial Average reach new intraday and closing records.

U.S. stocks were moved lower Wednesday as traders digested the release of the Fed's favorite inflation gauge, which showed inflation rose 2.3% annually in October.

European markets close lower

European markets closed lower Wednesday as investors continued to assess the potential impact of President-elect Donald Trump's plans to hike tariffs and fresh U.S. inflation data.

The pan-European Stoxx 600 index provisionally closed down 0.2%, with all sectors in negative territory apart from telecoms, food and beverage, utilities and financial services.

The FTSE 100 ended the day up 0.2% at 8,274, while the CAC fell 0.72% to 7,143 and the DAX dipped 0.18% to 19,261. Italy's FTSE MIB also fell 0.23% to 33,089.

— Karen Gilchrist

U.S. inflation rises to 2.3% in October, in line with expectations

U.S. inflation rose 2.3% year-on-year in October, in line with expectations but above September's 2.1% annual increase, fresh data from the Commerce Department showed Wednesday.

The personal consumption expenditures price index, the Fed's preferred inflation gauge, increased 0.2% on the month, also in line with the Dow Jones consensus forecast.

The latest print shows inflation still above the Federal Reserve's 2% target, providing little clarity on the future path for interest rates.

Fed minutes released Tuesday showed division among policymakers at their meeting earlier this month regarding rates, even as they voted to cut by 25 basis points.

— Karen Gilchrist

U.S. stocks open mixed

U.S. stocks opened mixed Wednesday, as Wall Street digested the latest jobs data and looked ahead to the release of the Federal Reserve's favorite inflation gauge.

The Dow Jones Industrial Average rose 0.28%, while the S&P 500 fell 0.08%. The Nasdaq Composite also traded 0.4% lower.

Initial U.S. jobless claims fell by 2,000 to 213,000 for the week ended Nov. 23, a sign that the U.S. labor market remains tight, fresh data from the Labor Department showed before the market open Wednesday.

— Karen Gilchrist

Stock futures little changed as Wall Street awaits Fed’s preferred inflation reading

U.S. stock futures were little changed on Wednesday as traders await the release of the Federal Reserve's favorite inflation gauge.

Futures tied to the Dow Jones Industrial Average rose 25 points, sitting near flat. S&P 500 futures fell 0.1%, while Nasdaq-100 futures dipped 0.2%.

The personal consumption expenditures price index (PCE) is set for release at 10 a.m. ET. Economists polled by Dow Jones expect a year-over-year increase of 2.8% for the core reading, which excludes food and energy. Investors will look through the data for indications on how the Fed may proceed on its rate policy at its December meeting.

That comes a day after the Fed issued the meetings from its November meeting. While central bank officials said they anticipate more interest rate cuts coming down the pike, they said the pace of cuts would happen "gradually."

"I think they'll cut again [in December]," Stephen Stanley, Santander U.S. Capital Markets chief U.S. economist, told CNBC's "Power Lunch." "I think they feel like they're still pretty far away from neutral, so they feel like they still have some distance to go and they'd like to get another notch in their belt on that."

Read CNBC's U.S. markets live blog here

— Sean Conlon

German consumer sentiment tumbles in December

German consumer sentiment is expected to tumble in the last month of the year, breaking a streak of increases as households, confronted by reports of job cuts, grow more pessimistic about their income prospects, a survey showed on Wednesday.

The consumer sentiment index, published by GfK and the Nuremberg Institute for Market Decisions (NIM), fell significantly more than expected going into December, to -23.3 points from a slightly revised down -18.4 points the month before.

Analysts polled by Reuters had expected a reading of -18.6. The December figure marks the lowest point for consumer sentiment since May, when it was -24 points, and is similar to the comparatively low level seen at the end of last year.

"The last few weeks of the year are ending with a significant setback in the consumer climate," said NIM analyst Rolf Buerkl.

"The reasons for this are certainly the job cuts reported by industry and the relocation of production abroad. In addition, the number of bankruptcies has recently increased," he said.

"In short, consumer climate remains at rock bottom."

Big-name companies, such as Bayer, Volkswagen and Thyssenkrupp, have announced job cuts in recent months as Europe's largest economy has struggled to recover.

— Reuters

Oil watchers say inflation risks will stave off Trump’s Canada tariff threat

Higher fuel prices could be in the cards if President-elect Donald Trump follows through with his tariff threats on Canada, according to industry experts, who are skeptical on whether the new levies will ever be implemented.

Trump on Monday pledged to implement additional tariffs on China, Canada and Mexico on day one of his presidency, according to his posts on social media platform Truth Social. He said he would sign an executive order on Jan. 20 imposing a 25% tariff on all imports from Canada and Mexico, a move that may breach the terms of a regional free trade agreement.

Goldman Sachs' Co-Head of Global Commodities Research Daan Struyven said that if a 25% levy hit Canadian crude exports to the U.S. "that could, in theory, lead to some pretty significant consequences for three groups."

Read more on the story here

— Lee Ying Shan

Just Eat Takeaway to delist from London Stock Exchange

Just Eat Takeaway will delist from the London Stock Exchange next month, in a blow to the U.K.'s ambitions to attract more high-growth tech firms to its stock market. Shares of the takeaway giant were down 1% after the announcement.

After completing a review of optimal listing venues, the Anglo-Dutch food delivery firm said Wednesday that it intends to delist from London's stock exchange, making Amsterdam Just Eat Takeaway.com's sole trading venue.

Explaining its decision, Just Eat Takeaway said it was delisting its shares from the LSE in a bid to "reduce the administrative burden, complexity and costs associated with the disclosure and regulatory requirements of maintaining the LSE listing, and in the context of low liquidity and trading volumes."

Read more on the story here

— Ryan Browne

France's CAC 40 slides 1%, political uncertainty reigns

France's CAC 40 was trading 1% lower on Wednesday, marking a one-year low for the index.

France is going through a period of heightened political uncertainty at the moment, as the minority government led by Prime Minister Michel Barnier hangs by a thread.

Earlier this week, the far-right National Rally party threatened to bring down Barnier's administration by the end of the year if changes were not made to the unpopular 2025 budget that has been proposed.

National Rally's figurehead Marine Le Pen on Monday suggested that talks with Barnier, which are aimed at extracting concessions on the tax-hiking budget bill, had failed to produce changes that would allow her party to approve the government's plans.

She suggested her party will join forces with the leftwing bloc to table a no-confidence motion in December, a move that would throw France's political establishment and economy into further disarray.

Read more on the story here: France's far right propped up the weak government. It could now bring it crashing down

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— Holly Ellyatt

'Europe's Detroit' threatened by Trump's potential tariffs

A small landlocked country in the heart of Europe appears to be uniquely exposed to President-elect Donald Trump's "America First" economic agenda.

Nicknamed the "Detroit of Europe" due to its thriving automotive industry, Slovakia produces more cars per capita than any other country in the world.

Trump's pledge to impose a blanket 10% or 20% tariff on all goods coming into the U.S. threatens to tarnish the central European country's reputation as a global leader in car production.

Read more on the story here: 'Europe's Detroit' built a thriving car industry. Trump tariffs now threaten to unravel its success

— Sam Meredith

EasyJet full-year operating profit rises 25% — but is still lower than expected

Budget airline easyJet posted a smaller-than-expected annual operating profit, citing an impact from the conflict in the Middle East.

The airline reported an operating profit of £597 million ($750.5 million) for the 12 months to Sept. 30, up 25% year-over-year. Still, the figure was less than the £625.6 million expected by analysts, according to an LSEG-compiled poll cited by Reuters.

In a statement, easyjet said earnings were impacted by the outbreak of conflict in the Middle East, "which resulted in the cancellation of a number of flying routes and the associated costs incurred and revenue forgone," as well as volatile and rising fuel prices.

For the current fiscal year ending September 2025, the airline expects a capacity of around 103 million seats, an increase of 3% from the previous year.

"The airline will continue to grow, particularly on popular longer leisure routes like North Africa and the Canaries and we plan to take 25% more customers away on package holidays," CEO designate Kenton Jarvis, who is replacing Johan Lundgren next year, said in a statement.

"The outlook for easyJet is positive and travel remains a firm priority with consumers who value our low fares, unrivalled network and friendly service," commented Kenton Jarvis, easyjet's chief financial officer who's set to replace CEO Johan Lundgren next year.

"The airline will continue to grow, particularly on popular longer leisure routes like North Africa and the Canaries and we plan to take 25% more customers away on package holidays."

— Holly Ellyatt

Aston Martin expects lower full-year core profit as delivery delays bite

British luxury carmaker Aston Martin on Tuesday forecast its annual core profit to fall short of 2023 levels as delivery delays in the ultra-exclusive Valiant models weigh on its margins.

The company expects its 2024 adjusted EBITDA to be in the range of 270 million pounds to 280 million pounds ($338.55 million - $351.09 million) compared to 305.9 million pounds last year.

The carmaker said it now expects to deliver only half of the 38 Valiant models by year end, previously guided to be the majority.

"We are already taking decisive actions to better position the Group for the future including a more balanced production and delivery profile in the coming quarters," CEO Adrian Hallmark said in a statement.

Aston Martin, which has been hit by persistent depressed demand in China and supply disruptions leading to manufacturing delays, had cut its production forecast by about 1,000 vehicles in September.

The Gaydon, UK-based company reported a smaller-than-expected third-quarter loss last month, aided by strategic steps taken to mitigate losses.

The company reiterated its focus on 2025 targets, including delivering about 2 billion pounds in revenue and targeted free cash flow generation. As part of the efforts to bolster its finances, Aston Martin also announced plans to raise about 210 million pounds through an equity and debt offering.

— Reuters

CNBC Pro: 'Cargojet is expensive': Short seller bets against Canada's largest cargo airline

A London-based hedge fund is betting against Cargojet, Canada's largest cargo airline, citing concerns about the company's aging fleet, accounting practices, and leadership style. The company did not respond to requests for comment from CNBC Pro.

Edgar Allen, founder and chief investment officer of High Ground Investment Management, revealed his firm's bearish stance on Cargojet during the Sohn investment conference earlier this month.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: U.S., China and more: Value investor reveals what to buy as Trump tariffs loom

News that U.S. President-elect Donald Trump's plans to hike tariffs on imports from China, Canada and Mexico sent ripples across global markets Tuesday.

Peter Boockvar, chief investment officer at the U.S.-headquartered Bleakley Financial Group, revealed his take on the tariffs, as well as sectors — and stocks — he is watching globally.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

European markets: Here are the opening calls

European markets are expected to open in mixed territory Wednesday.

The U.K.'s FTSE 100 index is expected to open 5 points higher at 8,267, Germany's DAX down 21 points at 19,285, France's CAC down 39 points at 7,160 and Italy's FTSE MIB down 173 points at 33,150, according to data from IG.

Earnings are set to come from Easyjet and data releases include German and French consumer confidence figures.

— Holly Ellyatt