European markets opened lower on Tuesday as investors weighed the global ramifications of U.S. President-elect Donald Trump’s proposed tariff measures.
These include a 10% tariff on Chinese imports and a 25% tariff on goods from Mexico and Canada, sparking fears of disrupted trade flows and inflationary pressures.
At 03:18 ET (0818 GMT), Germany's DAX fell 0.6%, the France's CAC 40 dropped 0.8%, and the UK's FTSE 100 was down 0.4%.
Economists remain concerned that the inflationary impact of these aggressive tariffs could prompt the Federal Reserve to slow its pace of interest rate cuts. A more cautious Fed could, in turn, strengthen the U.S. dollar against currencies like the euro and sterling, adding another layer of complexity to the global economic landscape.
Focus on European Central Bank and regional economies In the UK, Bank of England Chief Economist Huw Pill will testify before the House of Lords, offering an opportunity to gauge the bank’s approach to managing persistent inflation and weak economic growth.
In the eurozone, European Central Bank board member Elizabeth McCaul is scheduled to deliver remarks in Frankfurt, while her peer Mario Centeno will present the Bank of Portugal's latest financial stability report.
Both events are likely to shed light on the ECB's strategy as it addresses high inflation and uneven recovery within the bloc.
Elsewhere, in the Nordic region, Riksbank Deputy Governor Anna Seim will attend a seminar in Stockholm to share her views on Sweden’s monetary policy outlook.
In Finland, Bank of Finland Governor Olli Rehn will address parliament, likely discussing the country’s economic trajectory and broader European financial dynamics.
H&M faces headwinds, Next poised for growth H&M (ST:HMb) was downgraded to "sector perform," as analysts at RBC Capital Markets cited slower-than-expected recovery and ongoing competitive challenges weighing on its earnings growth and potential for stock rerating.
Conversely, Next plc (LON:NXT) received an upgrade to "outperform," with analysts at RBC pointing to strong sales growth, effective cost management, and international expansion plans. The stock is projected to offer about 25% upside potential.
Crude oil rises amid mixed geopolitical signals Oil prices inched higher on Tuesday, buoyed by easing geopolitical tensions in the Middle East, which alleviated immediate fears of supply disruptions.
At 3:18 ET Brent crude edged 0.3% higher to $72.69 per barrel, while crude oil WTI futures also rose 0.3% to $69.12 per barrel.
However, underlying support for energy prices remains strong due to lingering uncertainty about broader regional stability and the intensifying conflict between Russia and Ukraine.
