This photograph shows European countries’ flags waving in front of the European Parliament building in Strasbourg, eastern France, on June 6, 2024. (Photo by SEBASTIEN BOZON / AFP) (Photo by SEBASTIEN BOZON/AFP via Getty Images)
Sebastien Bozon | Afp | Getty Images
LONDON — European stocks are expected to open flat to higher on Tuesday as investors assess the new global trading landscape after U.S. President Donald Trump’s latest tariff move.
The U.K.’s FTSE index is seen opening unchanged, Germany’s DAX and France’s CAC 40 up around 0.25%, respectively, and Italy’s FTSE MIB up almost 0.3%, according to data from IG.
Regional stocks closed lower on Monday as global markets reacted to Trump’s decision to introduce a new, blanket 15% global levy on imports to the U.S.
European officials expressed concern over the action, signaling that it could pose a threat to its trade deals with the U.S. Later, the European Parliament announced Monday that it has paused work on ratifying the U.S.-EU trade deal agreed last summer.
U.S. markets also felt the heat from the tariff move, with equities tumbling Monday as investors grappled with the new trade policy, as well as persistent fears around AI disruptions to industry.
Trump continued to assert his ability to increase tariffs on Monday, warning of higher duties for countries that want to “play games” after the Supreme Court struck down his “reciprocal” tariffs last week.
Trump said at the weekend that the new 15% duty would go into effect immediately, though it was unclear whether any official documents had been signed outlining the timing. He also said that additional levies would be coming in the next few months.
Asia-Pacific markets traded mixed Tuesday as investors weighed renewed tariff threats from U.S.
Earnings come from Standard Chartered, Leonardo, Telecom Italia and Fresenius Medical Care. Data releases include French business confidence figures.
— CNBC’s Sean Conlon and Sarah Min contributed to this market report.