European stocks are seen opening lower on Thursday after U.S. President Donald Trump ratcheted up transatlantic trade tensions by announcing a new 25-percent tariff on all auto imports.
Analysts said Trump’s auto tariff threat will disrupt global trade and underpin local inflation.
European Commission President Ursula von der Leyen described the move as “bad for businesses, worse for consumers,” while Canadian Prime Minister Mark Carney labelled it a “direct attack” on Canadian workers.
Asian stocks traded mixed, with Chinese and Hong Kong markets rising, as Trump indicated the possibility of reducing tariffs on China, in an effort to speed up ByteDance’s sale of TikTok’s U.S. business.
Also, Trump said tariffs coming in April will ‘probably be more lenient than reciprocal’ amid concerns that a more stringent approach could adversely affect consumer and corporate sentiment.
Data released earlier today showed profits at China’s industrial firms contracted at the start of 2025, underscoring the mounting headwinds at home and abroad.
The dollar hovered near a three-week high as the Mexican Peso and the Canadian dollar slipped on tariff concerns.
Gold ticked higher as Goldman Sachs and BofA raised their gold price forecasts amid trade-war tensions. Oil held a gain after a government report showed U.S. crude inventories fell the most since December.
Trading later in the day may be impacted by reaction to the latest tariff news as well as U.S. reports on weekly jobless claims and pending home sales.
U.S. stocks snapped a three-session winning streak overnight and the dollar resumed its ascent as investors fretted about the economic impact of a tariff war.
Sentiment was also dented by a warning from the Congressional Budget Office that the Treasury risks a payment default in August unless Congress raises the debt ceiling.
The tech-heavy Nasdaq Composite lost 2 percent on doubts over artificial intelligence demand, while the S&P 500 shed 1.1 percent and the Dow eased 0.3 percent.
European stocks fell broadly on Wednesday after a White House announcement that auto tariffs are coming.
The pan European STOXX 600 dropped 0.7 percent. The German DAX tumbled 1.2 percent and France’s CAC 40 gave up 1 percent while the U.K.’s FTSE 100 rose 0.3 percent as data showed inflation slowed more than expected in February.
Market Analysis
European Shares Likely To Open On Cautious Note Amid Tariff Worries
2025-03-27 05:41:44
