European stocks drop on Trump trade war worries / Photo: © AFP
European stocks drop on Trump trade war worries
European stock markets mostly retreated Wednesday on concerns Europe could be the next tariffs target for US president-elect Donald Trump, who has announced a tough-negotiating hawk as his trade envoy.
Trump plans to hit China, Canada and Mexico with hefty tariffs from January.
"Investors are growing increasingly concerned that Donald Trump's next tariff target is continental Europe," said Dan Coatsworth, investment analyst at AJ Bell.
For Europe, this would create "another potential headwind on top of the existing one in the form of lacklustre economic activity", he added.
While there were losses for Paris and Frankfurt stock markets approaching the half-way stage Wednesday, London managed to nudge higher.
After another record-breaking lead from Wall Street on Tuesday, Chinese markets rallied as data showed that China's industrial sector narrowed losses in October.
Trump has announced Jamieson Greer as his trade envoy, saying he played a "key role" in imposing tariffs on China during his previous term in office.
The dollar dropped against main rivals awaiting the release Wednesday of the Federal Reserve's preferred gauge of inflation, as well as figures on jobless claims and economic growth.
The Fed has indicated support for a gradual approach to future interest-rate cuts as the jobs market remains solid, according to minutes from their November policy meeting.
Elsewhere, oil prices edged up having slid on news that Israel and Hezbollah in Lebanon had agreed a ceasefire.
Crude won support from the prospect that key OPEC+ nations will delay a pick-up in production, which was due to begin in January, when they meet Sunday.
Bitcoin sat around $93,500, having hit a record Friday and come within a whisker of the $100,000 mark on hopes that Trump will move to ease restrictions on the crypto market.
London stocks bucked the downward trend across most European stock markets, rising 0.1 percent.
Shares in EasyJet rose one percent in late morning deals after the UK airline posted a 40-percent rise in annual profits on strong demand for its package holidays.
The Paris stock market slid more than one percent as a French political standoff over a belt-tightening draft budget for 2025 threatens to topple the government.
Tokyo fell with Hello Kitty owner Sanrio tumbling more than 14 percent after major shareholders said they would reduce their stake in the firm.
- Key figures around 1100 GMT -
London - FTSE 100: UP 0.1 percent at 8,267.52
Paris - CAC 40: DOWN 1.2 percent at 7,106.02
Frankfurt - DAX: DOWN 0.6 percent at 19,186.60
Tokyo - Nikkei 225: DOWN 0.8 percent at 38,134.97 (close)
Hong Kong - Hang Seng Index: UP 2.3 percent at 19,603.13 (close)
Shanghai - Composite: UP 1.5 percent at 3,309.78 (close)
New York - Dow: UP 0.3 percent at 44,860.31 (close)
Euro/dollar: UP at $1.0529 from $1.0482 on Tuesday
Pound/dollar: UP at $1.2615 from $1.2567
Dollar/yen: DOWN at 151.39 yen from 153.06 yen
Euro/pound: UP at 83.47 pence from 83.41 pence
Brent North Sea Crude: UP 0.2 percent at $72.52 per barrel
West Texas Intermediate: UP 0.3 percent at $68.96 per barrel
V.Allen--TNT
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