European Shares Set To Fall After Trump's New Tariff Threats

(RTTNews) - European stocks are likely to open lower on Tuesday after U.S. President-elect Donald Trump said on his Truth Social network that he would impose an additional 10 percent tariff on goods from China and 25 percent on all products from Mexico and Canada.

This measure was to cut down migrants and illegal drugs flowing across U.S. borders at levels never seen before, he said.

Asian stocks were mostly lower, with Chinese and Hong Kong markets bucking the weak trend. Japan's Nikkei was down nearly 1.5 percent as exporters were hit by a stronger yen.

The dollar rebounded strongly after Trump's tariff threat, and gold was little changed above $2,600 per ounce, while oil prices recovered some ground, after having fallen nearly 3 percent in the U.S. trading session overnight as Israel said that it had edged closer to a ceasefire agreement with Hezbollah.

In economic releases, trading later in the day may be impacted by reaction to U.S. reports on new home sales and consumer confidence as well as the minutes of the latest Fed meeting.

Investors also eagerly await Wednesday's report on personal income and spending, which includes the Federal Reserve's preferred inflation readings.

According to forecasts, inflation as measured by Personal Consumption Expenditures likely reaccelerated in October.

U.S. markets are closed Thursday due to the Thanksgiving holiday and close early on Friday.

Overnight, U.S. stocks closed higher as bond yields fell on news that President-elect Donald Trump intends to nominate billionaire hedge fund manager Scott Bessent as Treasury Secretary.

The Dow Jones Industrial Average rallied 1 percent to extend gains for a fourth straight session and reach a new record closing high.

The S&P 500 added 0.3 percent to extend its winning streak to six sessions and the tech-heavy Nasdaq Composite also rose 0.3 percent.

European stocks also closed on a firm note Monday as bond yields fell in reaction to Trump's Treasury Secretary pick. The pan-European STOXX 600 ended flat with a positive bias.

The German DAX and the U.K.'s FTSE 100 both rose around 0.4 percent, while France's CAC 40 finished marginally higher.