European Markets Open Lower
European markets opened lower on Tuesday as global markets slumped amid concerns that the U.S. economy will suffer from President Donald Trump’s trade tariffs.
The pan-European Stoxx 600 index fell about 0.2% shortly after the opening bell, with the U.K.’s FTSE 100 down 0.2%, while France’s CAC 40 gained 0.3% and Germany’s DAX added 0.2%.
The travel and leisure sectors led the losses. Health care stocks were also in negative territory, after Danish pharmaceutical giant Novo Nordisk’s latest weight-loss drug trial results. The pharmaceutical giant fell about 2.62% in early trade, while Swiss drugmaker Novartis also fell about 3.6%.
Traders will be focused on earnings from Persimmon, Lego and Leonardo also due on Tuesday.
Volkswagen reported a 15% year-over-year drop in operating profit on Tuesday, citing rising costs and “extraordinary expenses” related to its restructuring plan. The company’s shares rose about 2.5% during early trading.
Regional markets kicked off the new trading week in lower territory on Monday, continuing the volatility seen in world markets last week amid uncertainty over the outlook for global trade and tariffs.
S&P 500 futures were trading around the flatline on Tuesday morning after fears of a recession in the U.S. economy sparked a major selloff on Monday. Negative sentiment on Wall Street sent Asia-Pacific markets lower overnight.
When asked about the possibility of a recession, Trump said during a Fox News interview that aired Sunday that the economy is going through a “transition period.” Economists have argued that Trump has proven to be something of an “agent of chaos” with his unpredictable trade tariff policies but said a downturn is not imminent.
Source: CNBC
