European Shares Set To Open Broadly Lower Amid Trump Tariff Worries

(RTTNews) - European stocks are seen opening broadly lower on Wednesday as investors ponder over Donald Trump's tariff plans and await the Fed's preferred readings on consumer price inflation later in the day for additional clues on the Fed's rate trajectory.

Trump on Tuesday named another China sceptic, Jamieson Greer, his trade envoy, a key figure in implementing the president-elect's economic agenda.

"Jamieson played a key role during my first term in imposing tariffs on China and others to combat unfair trade practices, and replacing the failed NAFTA deal with USMCA, therefore making it much better for American Workers," Trump said.

Also, Trump appointed Kevin A Hassett as the director of the White House National Economic Council.

As Chair of the Council of Economic Advisers, Hassett played a crucial role in helping design and pass the Tax Cuts and Jobs Act of 2017 and stood with me as we pursued our enormously successful agenda to Make America Great Again, Trump said in a separate statement.

Asian markets traded mixed, with benchmark indexes in South Korea and Japan drifting lower amid much uncertainty over Trump's tariff plans.

Stocks elsewhere in the region traded higher after China's October industrial profits signaled mixed trends. The safe-haven yen extended its strong run to hit a two-week high, weighed down by sagging Treasury yields.

The dollar steadied against major peers ahead of the October Personal Consumption Expenditures (PCE) price index due later on Wednesday and the Thanksgiving holiday on Thursday.

Gold clung to modest gains and oil prices were marginally lower as Israel approved a United States-brokered ceasefire agreement with Lebanon's Hezbollah.

According to U.S. President Joe Biden, the ceasefire deal involves Israeli forces withdrawing from Lebanon over 60 days, with Lebanon's military taking control of territory in the south of the country to ensure Hezbollah does not rebuild forces.

U.S. stocks rose overnight as President-elect Donald Trump threatened to impose increased tariffs on Mexico, Canada, and China to combat illegal immigration and drugs.

Meanwhile, the minutes of the Federal Reserve's latest monetary policy meeting showed that officials favor a gradual approach to lowering rates if economic data come in "about as expected, with inflation continuing to move down sustainably to 2 percent and the economy remaining near maximum employment."

The Dow rose 0.3 percent to log another new record closing high and the S&P 500 gained 0.6 percent to extend gains for the seventh straight session while the tech-heavy Nasdaq Composite added 0.6 percent.

European stocks closed on a weak note Tuesday as Trump's tariff threat prompted worries of a renewed trade war.

The pan European Stoxx 600 dipped 0.6 percent. The German DAX fell 0.6 percent, France's CAC 40 shed 0.9 percent and the U.K.'s FTSE 100 eased 0.4 percent.