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European stock markets stumble amid new US tariffs

12:04
European stock markets stumble amid new US tariffs
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European stock markets opened mostly lower on Monday after former US President Donald Trump announced over the weekend a new wave of tariffs — 30% duties on goods imported from the European Union and Mexico — triggering fears of escalating trade tensions.

In early trading, Paris lost 0.58%, Frankfurt dropped 0.76%, and Milan fell 0.77%, while London edged up by 0.16%, buoyed by the UK’s more favorable trade agreement with Washington.

“The global trade environment is a real rollercoaster,” noted Jim Reid, economist at Deutsche Bank. “Markets are increasingly bracing for unpredictable shifts.”

Trump’s move, set to take effect on August 1, came as negotiations between Brussels and Washington were still ongoing. He warned that any retaliation from the EU would be met with further tariff hikes beyond the initial 30%.

EU officials were reportedly expecting a tariff closer to 10%, similar to the UK’s deal, with exemptions for sectors like metals and pharmaceuticals. “This came as a surprise,” said Ipek Ozkardeskaya from Swissquote Bank.

Still, markets appear to interpret the move as a negotiation tactic rather than a final decision. “Trump had previously floated a 50% tariff—so in that light, 30% seems like an improvement,” Reid added.

European Commission President Ursula von der Leyen said on Sunday the EU would not immediately retaliate, especially on tariffs targeting steel and aluminum, in hopes of reaching a compromise. EU Trade Ministers are meeting today in Brussels to align on a response strategy.

Asian markets showed mixed results: Tokyo’s Nikkei closed down 0.28%, while Hong Kong’s Hang Seng gained 0.28%, Shanghai added 0.27%, and Shenzhen lost 0.11%.

In Singapore, the largest IPO in eight years took place with NTT DC REIT, a data center investment trust backed by Singapore’s sovereign wealth fund and Japan’s NTT Group, gaining 3% shortly after opening.

Meanwhile, Bitcoin surged past $120,000 for the first time, reaching $122,122 amid strong investor confidence, favorable US regulation, and growing adoption in emerging markets.

Crude oil prices were stable: Brent rose 0.28% to $70.56 per barrel, and WTI climbed 0.26% to $68.63. The US dollar gained 0.12% against the euro, trading at $1.1675 per euro.



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