European markets were set to start Tuesday’s trading day in positive territory after a four-day losing streak as red-hot tariff tensions rage on around the world.
Stocks sank Monday, with the pan-European Stoxx 600 ending the day around 4.5% lower. This marked its lowest closing level since January 2024. Key regional indices including the U.K.’s FTSE 100, the German DAX and France’s CAC 40 also all closed sharply lower.
Global equity markets have been rocked by the frequent updates around U.S. President Donald Trump’s tariffs regime in recent days as tensions between the U.S. and its trading partners do not appear to be easing.
Speculation on Monday about a potential tariff pause was quickly shut down by the White House, while Trump threatened to hike tariffs on China by another 50% unless it scrapped retaliatory duties. Beijing last week imposed a 34% tariff on American products in response to Trump announcing his full list of so-called reciprocal tariffs.
Overnight, China’s Commerce Ministry said it “resolutely opposes” Trump’s threat of escalating tariffs, and vowed to take countermeasures to safeguard its own rights and interests.
Asia-Pacific markets were however broadly higher Tuesday, rebounding previous session’s losses.
Also on Monday, European Commission President Ursula von der Leyen said the EU had offered Trump a “zero-for-zero tariffs” deal for industrial goods, and reiterated that the bloc was keen to negotiate but was also prepared to impose countermeasures.
Trump promptly rejected the deal.
U.S. stock futures were last higher after the S&P 500 extended its losses for a third day Monday in yet another volatile trading session on Wall Street.
— CNBC’s Anniek Bao contributed to this report.