European markets returned from the long Easter weekend on a negative note, amid continuing jitters around the U.S. economy and global trade.
The pan-European Stoxx 600 index was 0.5% lower by 8:27 a.m. in London, with most sectors and all major bourses in negative territory. Tech stocks led regional losses, with the Stoxx Europe Technology index down 1.7% during early morning trade.
Concerns are lingering around the possibility of a global trade war erupting, with Beijing threatening on Monday to retaliate against countries that follow Washington’s calls to isolate China.
That followed a sharp sell-off on Wall Street on Monday, which came after U.S. President Donald Trump doubled down on his pressure campaign on Federal Reserve Chair Jerome Powell.
Trump posted on Truth Social on Monday that the economy would slow if the Fed did not cut interest rates. In the latest of multiple recent posts calling out Powell by name, he called the Fed chief “Mr. Too Late” and a “major loser.”
Trump hinted at Powell’s “termination” last week, an unprecedented action that White House economic advisor Kevin Hassett said the president’s team was currently studying. Powell has said he cannot be fired under law and intends to serve through the end of his term in May 2026.
Asia-Pacific markets were subdued overnight, tracking Wall Street’s sell-off.
There are no major earnings or data releases from Europe Tuesday but traders will be keeping an eye on news and comment out of the IMF-World Bank Spring meetings in Washington this week, where the threat and fallout from U.S. President Donald Trump’s tariffs regime is likely to dominate discussions.
— CNBC’s Alex Harring contributed to this market summary