European Shares Seen Lower Amid Trump Tariff Jitters

(RTTNews) - European stocks are seen opening broadly lower on Friday as U.S. President Donald Trump amped up trade threats, fueling uncertainties around the inflation and growth outlook.

The Canadian dollar regained ground after weakening sharply earlier as Trump proposed 35 percent tariff on Canadian goods and warned that any fiscal retort from the country will be tacked onto the 35 percent set to take effect Aug. 1.

Reacting to the move, Canadian Prime Minister Mark Carney said that Canada has made vital progress to stop the scourge of fentanyl in North America and that his government will continue to defend workers and businesses.

Meanwhile, in an interview with NBC News published late Thursday, Trump talked about tariffs and sending Patriot missiles to NATO for Ukraine.

Trump floated 15 percent to 20 percent blanket tariffs on most trading partners, dismissing inflation concerns. Blanket tariffs are currently set at 10 percent.

On the status of Russia's war with Ukraine, Trump said he will make a major statement on Russia on Monday without giving specific details.

The European economic calendar remains light, with monthly GDP and foreign trade from the U.K. and final inflation from France likely to garner some attention later in the day.

Asian stocks were mixed, with Chinese and Hong Kong markets rallying on optimism over policy support.

U.S. stock futures dipped, the dollar gained on tariff jitters and gold held firm above $3.330 per ounce on safe-haven demand and Fed rate cut bets.

Oil prices recovered some ground after a 2 percent drop on Thursday, driven by tariff uncertainty, concerns over slower Chinese demand and OPEC's reduced oil demand forecast.

U.S. stocks rose overnight as focus shifted to corporate earnings, with Delta Airlines forecasting third-quarter and full-year profits above Wall Street estimates.

Investors also cheered data that showed weekly jobless claims unexpectedly slipped to a seven-week low.

The tech-heavy Nasdaq Composite inched up marginally and the S&P 500 rose 0.3 percent to post record closing highs while the Dow added 0.4 percent.

European stocks rose for the fourth day on Thursday amid expectations the European Union and the U.S. will strike a trade deal soon.

The pan European STOXX 600 gained half a percent. While the German DAX dipped 0.4 percent, France's CAC 40 edged up by 0.3 percent and the U.K.'s FTSE 100 climbed 1.2 percent.