Tower Bridge and The Shard at sunset, London
Laurie Noble | Stone | Getty Images
LONDON — European stocks are expected to open in negative territory on Tuesday as the specter of fresh trade tariffs lingers, hurting market sentiment.
The U.K.’s FTSE index, Germany’s DAX, and France’s CAC 40are all seen opening around 0.2% lower, while Italy’s FTSE MIB is expected to open 0.26% lower, according to data from IG.
Regional bourses fell on Monday as traders reacted to U.S. President DonaldTrump’s threat to hike tariffson European countries if they oppose his bid to buy Greenland.
The market slump comes after Trump announced on Saturday thateight European allies would face increasing tariffs, starting at 10% on Feb. 1 and rising to 25% on June 1, if a deal is not reached that allows Washington to “buy” Greenland, a semi-autonomous territory that’s part of Denmark.
The proposed tariffs would target Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands, and Finland, Trump said. European leaders have hit back against the tariffs and have called for more dialogue with the U.S.
Focus on Tuesday will turn to the World Economic Forum in Davos, Switzerland. The forum steps up a gear today with key speeches from high-profile delegates, including European Commission President Ursula von der Leyen, Vice Premier of ChinaHe Lifeng, and French President Emmanuel Macron. Trump is due to address the forum on Wednesday.
CNBC is in Davos and will be interviewing a wide range of CEOs and government leaders at the forum. Follow our online coverage here.
There are no major earnings or data releases in Europe on Tuesday.
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