European Stocks Drop, Oil Falls as Tariffs Kick In
Stocks in Europe retreated on concern the region could be next to face US tariffs after President Donald Trump imposed levies on Mexico, Canada and China.
The Stoxx 600 lost 1% at the open, while futures on the S&P 500 traded little changed after the underlying index sank the most this year on Monday. Chinese stocks edged higher on speculation the country is taking a measured approach with its retaliatory tariffs, stopping short of a full-blown trade war.
The new levies mark Trump’s biggest push to remake global trade and investors will be watching his address to Congress Tuesday for hints on future steps. Canada announced a sweeping package of tariffs in response to the US moves and China retaliated by imposing tariffs as high as 15% on some US exports.
“China’s hit back isn’t exactly aggressive,” said Billy Leung, an investment strategist at Global X ETFs in Sydney. That level of tariffs on “US agricultural goods, but nothing broad-based on tech or autos, suggests to me they’re leaving room for negotiation rather than going full tit-for-tat.”
Treasuries and the Bloomberg Dollar Spot Index were steady. The Mexican peso fell 0.6% against the greenback, while the Canadian dollar was little changed, after retreating for seven straight sessions.
In commodities, oil extended losses from the lowest in almost three months as OPEC+ said it will proceed with plans to revive halted production. Gold steadied after having advanced the previous day.
Source : Bloomberg
