European utilities face market rout and tariff impacts, US renewable developers at risk.

From Morningstar: 2025-04-07 12:24:00

European utilities rallied on April 3 but faced a market rout on April 4. Tariffs may impact US renewables developers like Ørsted and EDPR, with expected impairments on projects. Companies like E.On and Enel remain undervalued and less exposed. Fears of global economic slowdown affect commodity prices, while European developers may reallocate investments.

Tariffs and potential early phaseout of tax credits could hinder clean power development in the US. European developers may adjust investments accordingly. European gas and power forward prices are down, influencing the market. Companies like Veolia show resilience despite perceived cyclicality. Long-term implications of tariffs and tax credit risks on clean power development are significant.



Read more at Morningstar: European Utilities Caught in Market Rout Despite…