European markets are set to open broadly positive on Tuesday as investors digest the impact of the latest U.S. tariffs. Traders are balancing hopes for steady corporate earnings with concerns over new trade restrictions announced by U.S. President Donald Trump, which could reshape global commerce.
Data from IG suggests the U.K.’s FTSE index may start unchanged, while Germany’s DAX and France’s CAC 40 are expected to rise by about 0.25%, and Italy’s FTSE MIB could gain roughly 0.3%. The cautious optimism comes after regional markets closed lower on Monday, reflecting investor anxiety over global trade disruptions.
The downturn in European stocks on Monday followed Trump’s announcement of a new 15% global levy on U.S. imports. European officials voiced their concerns, warning the tariff could undermine existing trade agreements. In response, the European Parliament paused work on ratifying the U.S.-EU trade deal negotiated last summer, signaling potential friction ahead.
U.S. markets also reacted negatively, with equities falling amid fears over the tariffs and ongoing uncertainty around AI’s impact on various industries. Trump has indicated the possibility of even higher tariffs for countries that attempt to “play games,” after the Supreme Court recently struck down his previous “reciprocal” tariff plan.
Investors in Asia-Pacific markets traded cautiously on Tuesday, reflecting mixed reactions to the renewed U.S. trade threats. Market watchers are also closely following corporate earnings from companies like Standard Chartered, Leonardo, Telecom Italia, and Fresenius Medical Care, as well as French business confidence data, which could influence regional sentiment in the coming days.
source: cnbc