European stocks are seen opening on a firm note Wednesday after U.S. President Donald Trump dismissed concerns about a potential U.S. recession and asserted confidence in economic growth.
He acknowledged the challenges of his approach but expressed confidence in its outcomes.
Investors may also react positively to Ukraine’s acceptance of a U.S. proposal for a ceasefire with Russia and easing tensions between the U.S. and Canada.
The Trump administration has lifted its suspension of military aid and intelligence sharing for Ukraine following talks in Saudi Arabia.
Kyiv has signaled it is open to a 30-day ceasefire in the war with Russia, pending Moscow’s agreement.
In another significant development, Trump reversed an earlier plan to double tariffs on Canadian steel, aluminum to 50 percent after Ontario’s premier said he had agreed to suspend the Canadian province’s 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota.
Asian markets were broadly lower amid concerns that Trump’s ever-changing trade policies could send the world’s largest economy into recession.
The dollar gained ground ahead of U.S. CPI data due later in the day that might give additional clues on the direction of interest rates.
Gold was marginally lower after climbing 1 percent on Tuesday, boosted by a weaker dollar and concerns over an economic slowdown from tariff wars.
Oil prices traded higher amid expectations of some supply disruptions in Russia after Ukraine claimed it had attacked a major oil refinery in Moscow.
Investors also await the OPEC’s monthly report for more insights into the cartel’s plans for production.
U.S. stocks fell sharply overnight, adding to the biggest selloff in months as tariff-related worries overshadowed signs of resilience in the labor market.
The Dow lost 1.1 percent, the S&P 500 shed 0.8 percent and the tech-heavy Nasdaq Composite slipped 0.2 percent.
European stocks ended lower on Tuesday amid fears about U.S. trade policies and uncertainties related to Germany’s fiscal stimulus package.
The pan European STOXX 600 declined 1.7 percent. The German DAX and France’s CAC 40 both fell around 1.3 percent, while the U.K.’s FTSE 100 dropped 1.2 percent.
Business News
European Shares Poised For Steady Open As Trump Downplays Recession Fears
2025-03-12 05:30:24
