European stocks look set to open on an upbeat note Wednesday, a day after U.S. President Donald Trump’s trade war drew swift retaliation with new tariffs from Mexico, Canada and China.
Offering a temporary reprieve from tariff worries, U.S. Commerce Secretary Howard Lutnick hinted that some relief could be around the corner for Canada and Mexico.
A potential deal is expected to involve reducing, at least partially, the new 25 percent tariffs on imports from both countries.
Elsewhere, Beijing announced a 2025 economic growth target of around 5 percent and pledged additional fiscal support to counter the effects of deflation, a property crash and rising U.S. tariffs.
The special initiatives to boost consumption include proposals to cut the reserve ratios and interest rates, issue special treasury bonds to support state-owned lenders in replenishing capital and use monetary policy instruments to bolster property and stock markets.
There is also some cheer on the data front as a private survey showed China’s services sector grew more than expected in February, driven by a faster rebound in demand.
Asian markets traded mixed, and the dollar held near a three-month low versus major peers while gold slipped, influenced by higher Treasury yields.
Oil prices extended losses for a third straight session on demand concerns and amid the prospect of higher supplies from OPEC+.
Trading later in the day may be impacted by reaction to the latest U.S. economic data, including reports on private sector employment, service sector activity and factory orders.
Closer home, Eurozone HCOB services PMI data may garner some attention ahead of the release of Eurozone retail sales data and the ECB rate decision on Thursday.
U.S. stocks slumped overnight amid escalating trade tensions and mounting concerns about growth.
The tech-heavy Nasdaq Composite ended 0.4 percent lower after having plunged by as much as 2.1 percent to a nearly five-month intraday low.
The S&P 500 fell 1.2 percent to a four-month closing low while the Dow gave up 1.6 percent.
European stocks fell from record highs on Tuesday as fresh U.S. tariffs on Canada, Mexico and China took effect, and China and Canada announced retaliatory measures.
The pan European STOXX 600 tumbled 2.1 percent and logged its worst day since August 2024.
The German DAX plunged 3.5 percent after the prospective partners in Germany’s next government agreed to abandon strict fiscal controls to boost defense spending.
France’s CAC 40 plummeted 1.9 percent and the U.K.’s FTSE 100 lost 1.3 percent.
European Shares Poised For Higher Open
2025-03-05 05:29:30
