European markets opened lower on Thursday, weighed down by President Donald Trump’s tariff policies, which continue to disrupt global trade relations. The uncertainty surrounding U.S. tariffs on steel and aluminum imports and retaliatory measures from the European Union and Canada led to declines across major European indices. The pan-European Stoxx 600 fell 0.12%, with the automotive sector facing the biggest losses, while telecom stocks performed slightly better.
Investors are focusing on earnings reports from Hannover Re and Deliveroo, but no major economic data is scheduled for release. Volatility remains a key theme this week, with markets reacting to concerns over the potential long-term impact of Trump’s tariffs on global trade. In the U.S., futures for the S&P 500 showed signs of recovery, buoyed by softer-than-expected inflation data, which provided some optimism about the economic outlook.
The ongoing trade war concerns were discussed at CNBC’s CONVERGE LIVE event in Singapore, where business leaders, investors, and policymakers exchanged views on the global impact of rising tariffs. Market sentiment was shaken further by the fears that tariffs could lead to increased consumer prices and a slowdown in global economic growth, with warnings that volatility might persist as nations adjust to the shifting trade landscape.
While the markets grapple with these uncertainties, individual companies like Hugo Boss have also expressed caution, with the German fashion brand forecasting subdued growth amid macroeconomic and geopolitical instability. These challenges are especially evident in the Asia-Pacific region, where uncertainties regarding the recovery of the Chinese market are weighing on business performance. European companies, including automakers like Ferrari, are bracing for more tariff impacts, with some preparing countermeasures to mitigate potential damage.
SOURCE: CNBC