Trump's tariffs worry European investors, markets open in the red
Press Hub UCapital
Share:
Following a session of broad declines, concerns over Trump’s tariff threats continue to weigh on European investors. The major European stock markets open lower in the final session of the week, following the declines seen in Wall Street and Asian markets, where the Nikkei in Tokyo experienced a significant drop.
The U.S. president confirmed that tariffs on Canada and Mexico will take effect on March 4, along with a further 10% increase on goods from China. Additionally, reciprocal tariffs are set to begin on April 4, potentially involving Europe as well, increasing uncertainty among market players.
Investors fear that the trade war sparked by Trump’s policies could complicate the Federal Reserve’s efforts to fight inflation. Specifically, there are concerns that the new tariffs could negatively impact future interest rate decisions. Today, the PCE deflator, a key inflation indicator closely followed by the Fed, is expected to be released, potentially showing signs of slowing down.
The U.S. president confirmed that tariffs on Canada and Mexico will take effect on March 4, along with a further 10% increase on goods from China. Additionally, reciprocal tariffs are set to begin on April 4, potentially involving Europe as well, increasing uncertainty among market players.
Investors fear that the trade war sparked by Trump’s policies could complicate the Federal Reserve’s efforts to fight inflation. Specifically, there are concerns that the new tariffs could negatively impact future interest rate decisions. Today, the PCE deflator, a key inflation indicator closely followed by the Fed, is expected to be released, potentially showing signs of slowing down.