By Nikhil Sharma
(Reuters) – European shares were subdued on Tuesday, as rising financials and healthcare shares countered broader losses stemming from uncertainty related to U.S. President Donald Trump’s proposed tariff measures following his inauguration.
The pan-European STOXX 600 was up 0.1% as of 0954 GMT, hovering near its highest in three months.
Heavyweight healthcare led the gains with a 0.7% rise, with drugmaker Novo Nordisk advancing 2.9%.
Financial services gained 0.5%, boosted by a 4.5% jump in abrdn after the British asset manager swung to net inflows in the fourth quarter.
Personal and household goods was also among the top winning sectors, adding 0.6%.
Markets around the globe reacted to the beginning of Donald Trump’s presidency. He did not immediately impose any tariffs when he took office on Monday, but said he was thinking about imposing 25% duties on imports from Canada and Mexico on Feb. 1.
Trump also revealed his plans to reverse the U.S. trade deficit with the European Union, either with tariffs or more energy exports.
European automakers came under pressure. Shares of Volkswagen, BMW and Stellantis slipped about 1% each on uncertainty over possible new tariffs.
Basic resources dipped 0.8%, tracking lower metal prices. [MET/L]
“Market is clearly on edge at this point about what comes next,” said Chris Beauchamp, chief market analyst at IG Group, adding that there is a sense that this administration will “take a hard line on tariffs, but implementation of course takes a while.”
The European Union’s senior financial officials said that Trump’s return to the White House is a wake-up call for EU countries to fix their economies and become more competitive.
This comes at a time when Trump’s tariff-related rhetoric has ignited possibilities of a global trade war.
Among other stocks, Orsted tumbled 15.2% after the offshore wind developer posted an impairment charge of 12.1 billion Danish crowns ($1.69 billion) related to its U.S. offshore portfolio.
Other wind power stocks including Vestas Wind Systems and Nordex SE fell about 2.6% each after Trump suspended new federal offshore wind leasing pending an environmental and economic review.
Avanza Bank rose 7.4% to a more than three-year high after the Swedish financial group posted fourth-quarter results above market expectations.
(Reporting by Nikhil Sharma; Editing by Shinjini Ganguli)
Comments