European markets fall after Putin's nuclear threat; Thyssenkrupp soars

Investing.com -- European stock markets traded sharply lower Tuesday, with risk sentiment hit by heightened geopolitical tensions after Russian President Vladimir Putin issued a warning with an updated nuclear doctrine.

At 07:10 ET (12:10 GMT), Germany’s DAX index fell 0.8%, France’s CAC 40 slipped 1%, and the UK’s FTSE 100 dropped 0.3%. Putin issues nuclear warning

Russian President Vladimir Putin issued a warning to the United States earlier Tuesday, lowering the threshold for a nuclear strike just days after the Biden administration reportedly allowed Ukraine to fire American missiles deep into Russia.

Russia would now consider a nuclear strike if it, or its ally Belarus, faced aggression "with the use of conventional weapons that created a critical threat to their sovereignty and (or) their territorial integrity", the new doctrine said.

This represented a change from the previous iteration which stated that Russia may use nuclear weapons in case of a nuclear attack by an enemy or a conventional attack that threatened the existence of the state. Eurozone CPI confirmed at 2.0%

The eurozone’s consumer inflation reading was confirmed at 2.0% in October on an annual basis, in line with the European Central Bank's target.

Although the inflation rate remains key in determining ECB monetary policy, officials have recently expressed concerns over the damage that expected new U.S. trade tariffs would do to economic growth in the region.

"The balance of macro-risks has shifted from concerns about high inflation to fears over economic growth," ECB Vice-President Luis de Guindos  told an event in Frankfurt on Monday.

"The growth outlook is clouded by uncertainty about economic policies and the geopolitical landscape, both in the euro area and globally. Trade tensions could rise further, increasing the risk of tail events materialising."

In the U.S., housing data slated for release later in the day is unlikely to shift market dynamics significantly, with attention instead turning to a series of speeches from key central bankers.

Adding to the day’s narrative, Bank of England Governor Andrew Bailey and other officials have appeared before Parliament, while ECB policymaker Frank Elderson and Riksbank’s First Deputy Governor Anna Breman are also in the spotlight.  Thyssenkrupp predicts turnaround

Thyssenkrupp (ETR:TKAG ) stock soared 8.5% despite reporting a €1 billion impairment on its Steel Europe division.

The German industrial giant also announced a net loss of €1.5 billion for the fiscal year, but crucially expects to swing to profit in the current fiscal year, indicating that a turnaround plan that includes restructuring its ailing steel division is making progress.

Imperial Brands (OTC:IMBBY ) stock rose 2.3% after the tobacco giant delivered an upbeat report, posting a 4.6% rise in adjusted operating profit for the fiscal year ending Sept. 30. 

This growth was driven by improved profitability in its tobacco and next-generation products businesses, alongside strong performance in its distribution arm.  Crude oil prices dip 

Crude oil prices weakened Tuesday, with gains from the previous session tempered as traders assessed the global supply outlook. 

By 07:10 ET, Brent crude fell 0.5% to $72.94 per barrel, while U.S. crude (WTI) fell 0.6% to $68.76 per barrel.

The initial boost on Monday, driven by news of a production halt at Norway’s Johan Sverdrup field due to an onshore power outage, waned, as traders fretted about the unstable situation in eastern Europe.

(Navamya Archarya contributed to this article.)

Source: Investing.com