Europe bulletin: stocks rise, Bentley cuts jobs, Audi sees rebound

European equities edged higher amid easing volatility while companies across sectors navigated geopolitical risks, trade pressures, and structural shifts.

From rising energy stocks to job cuts in the auto sector and a trading disruption at a major bank, investors continued to assess both macroeconomic signals and company-specific developments.

European stocks rise as oil holds above $100

European shares closed higher on Tuesday, extending a relatively calm start to the week as investors awaited key central bank signals to guide their next moves.

The pan-European STOXX 600 index rose 0.67% to 602.45 points.

Major regional indices also advanced, with London’s FTSE climbing 0.83%, CAC 40 up 0.49%, DAX 40 gaining 0.71%, Madrid rising 0.93%, and Milan adding 1.22%.

Markets remain sensitive to oil price movements amid the ongoing Middle East conflict.

Brent crude held above $103 per barrel, supported by concerns over supply disruptions as tensions involving Iran continue.

Traffic through the Strait of Hormuz remained largely shut, adding to uncertainty over global energy flows.

Energy stocks led gains, with the sector index rising 2.3%.

Shell shares advanced 1.63%, marking a fifth consecutive session of gains.

Utilities also performed well, climbing 1.6% as investors rotated into defensive sectors.

Attention is now focused on upcoming policy decisions from the US Federal Reserve and the European Central Bank.

Markets are currently pricing in at least one ECB rate hike before year-end, though expectations remain volatile.

UBS hit by global trading disruption

UBS Group experienced a global technology outage on Tuesday that disrupted parts of its trading operations.

Some trading activity was halted during the incident, according to a Bloomberg report citing people familiar with the matter.

The bank has since identified the root cause and implemented a fix, with conditions expected to improve.

The outage occurred during a period of heightened market activity driven by geopolitical tensions and volatility linked to the Middle East conflict.

While brief trading disruptions are not uncommon, the incident follows other recent market infrastructure issues, including a temporary halt in trading on the London Metal Exchange and a significant outage at CME Group last year.

Bentley cuts workforce as profits decline and costs rise

Luxury carmaker Bentley announced plans to cut approximately 275 jobs in the UK as it responds to weaker demand and rising trade costs.

The reductions, affecting management, agency and non-manufacturing roles at its Crewe site, represent about 6% of its workforce.

“At the same time, we are making some difficult decisions to ensure the long-term competitiveness of the business, including an organisational adjustment potentially impacting approximately 275 positions,” said CEO and chairman Dr Frank-Steffen Walliser, adding that Bentley would support affected staff “with care, guidance and assistance.”

Bentley reported an operating profit of £186 million in 2025, with revenue of £2.25 billion.

However, operating profit fell 42% year on year due to factors including US tariffs, foreign exchange movements and weaker demand in China.

Audi targets margin recovery as tariffs weigh on earnings

Audi said it expects an improvement in its operating margin in 2026 after facing significant cost pressures in 2025.

The company forecast a margin of between 6% and 8% for 2026, up from 5.1% in 2025.

Operating profit fell 14% last year to 3.4 billion euros, partly due to tariff impacts totaling 1.2 billion euros.

"Geopolitical uncertainties and global competitive pressure kept the automotive industry on its toes again last year," Audi CEO Gernot Doellner said.

Tariffs, particularly those affecting vehicles exported to the US, are expected to remain a challenge.

Audi is considering establishing its first manufacturing plant in the United States, though such a move would depend on potential tariff relief.

The company is also navigating challenges in China, where deliveries fell 5% in 2025.

It is attempting to regain market share with a new electric model developed in partnership with SAIC, though early sales have been weaker than expected.