European stocks may open slightly higher on Tuesday after steep losses in the previous session as U.S. President Donald Trump escalated trade tensions across the globe.
Asian markets slipped and bearish investor sentiment pushed bond prices higher after Trump restored tariffs on Brazil and Argentina and proposed tariffs on up to $2.4bn value of French imports, such as Roquefort cheese, lipstick, handbags and sparkling wine, in retaliation for France’s tax on American tech giants. Trump also warned China of new measures if ongoing talks are not successful.
Meanwhile, China announced sanctions against several U.S. non-government organizations for encouraging protesters to “engage in extremist, violent and criminal acts” and said it would now allow U.S. military ships and aircraft to visit Hong Kong.
The dollar held near a one-week low versus the yen while oil extended gains on expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies may agree to deepen output cuts at a meeting this week.
In economic releases, U.K. like-for-like sales declined ahead of festive season in November, data published by the British Retail Consortium and KPMG showed.
Like-for-like retail sales decreased 4.9 percent on a yearly basis in the month compared to the forecast of 0.4 percent drop. Total sales fell 4.4 percent from last year.
Construction Purchasing Managers’ survey data from the U.K. is due later in the session, headlining a light day for the European economic news.
U.S. stocks fell sharply overnight as factory activity contracted further in November and President Trump said he would reinstate tariffs on metal imports from Brazil and Argentina.
The Dow Jones Industrial Average dropped 1 percent, the tech-heavy Nasdaq Composite shed 1.1 percent and the S&P 500 declined 0.9 percent.
European markets ended deep in the red on Monday after the release of downbeat