European Shares Seen Subdued As US Tariff Deadline Looms
European stocks may open largely unchanged on Wednesday amid the Independence Day holiday in the U.S.
Asian stocks are trading mixed as trade jitters continued to simmer ahead of the July 6 deadline for the Trump Administration’s planned imposition of tariffs on Chinese imports.
If the White House goes ahead with its plan to impose new tariffs, the Chinese government is expected to retaliate in kind with its own tariffs on U.S. agricultural products and other goods.
The European Union and Canada are also striking back with tariffs after the Trump administration slapped tariffs on steel and aluminum imports.
The Chinese yuan surged against the dollar following verbal intervention by the People’s Bank of China.
Gold prices hit one-week high on dollar weakness while oil traded above $74 a barrel amid signs of a tightening U.S. market and the ongoing crude supply outage at Syncrude Canada in Alberta.
In economic releases, shop prices in the United Kingdom dropped an annual 0.5 percent in June, the British Retail Consortium said earlier today – following the 1.1 percent annual drop in May.
Services Purchasing Managers’ surveys from the U.K. and euro area are due later in the session, headlining a light day for the European economic news.
Across the Atlantic, the Federal Reserve releases minutes of its June meeting on Thursday while the Labor Department’s monthly jobs report is due on Friday.
Overnight, U.S. stocks fell amid weakness in technology stocks after a Chinese court temporarily banned Micron Technology chip sales.
The Dow and the S&P 500 dropped around half a percent, while the tech-heavy Nasdaq Composite shed 0.9 percent.
European markets ended Tuesday’s session with strong gains after German Chancellor Angela Merkel and her coalition partners reached a compromise deal on migration.
The pan-European Stoxx Europe 600 index climbed 0.8 percent. The German DAX rose 0.9 percent, France’s CAC 40 index gained 0.8 percent and the U.K.’s FTSE 100 added 0.6 percent.
by RTTNews Staff Writer
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