European Shares Seen Lower As Trump Denies Report On Scaled-back Tariffs

(RTTNews) - European stocks are likely to open lower on Tuesday after U.S. President-elect Donald Trump called a report from The Washington Post about him considering scaling back his tariff plans, "fake news."

After taking office on Jan. 20, Trump is expected to impose tariffs of 10 percent on global imports into the U.S. along with a 60 percent tariff on Chinese goods.

Many economists warned the move the move could drive up inflation and keep U.S. interest rates higher for longer.

The dollar recovered in Asian trade, after having fallen as much as 1 percent during intraday trading on Monday.

The Canadian dollar advanced after Prime Minister Justin Trudeau announced his resignation as head of the Liberal Party, triggering a contest to replace him.

Gold edged up slightly as investors await more U.S. economic data this week for additional clues on the Fed's rate trajectory.

The release of Fed minutes along with reports on job openings and the non-farm payrolls report due this week may help investors gauge the Federal Reserve's monetary policy direction in 2005.

Fed officials, including Mary Daly and Adriana Kugler, have signaled a cautious approach to rate cuts, aligning with Richmond Fed President Thomas Barkin's restrictive stance to counter inflation risks.

Treasuries were little changed after the yield on the 30-year note climbed to the highest in more than a year on Monday. Oil was little changed following its first drop in six sessions.

Trading later in the day may be impacted by the release of Eurozone CPI and unemployment data as well as U.S. reports on the trade deficit, service sector activity and job openings.

Asian stocks traded mixed, with Japan's Nikkei climbing more than 2 percent as the yen dropped to its lowest since July 2024 against the dollar, helping lift export-related shares.

Mainland China and Hong Kong markets fell amid trade tensions after the United States placed Tencent Holdings Ltd. and Contemporary Amperex Technology Co. Ltd. on a blacklist due to alleged links to the Chinese military.

U.S. stocks rose broadly overnight, the dollar dropped and yields on long-term Treasury securities edged higher as Foxconn reported record fourth-quarter revenue and President-elect Donald Trump called reports about him considering scaling back his tariff plans, "fake news."

The tech-heavy Nasdaq Composite climbed 1.2 percent and the S&P 500 gained 0.6 percent while the narrower Dow finished marginally lower.

European stocks rose the most in over a month on Monday after reports emerged that the incoming Trump administration may explore softer-than-expected tariffs.

The pan European STOXX 600 advanced 1 percent. The German DAX rallied 1.6 percent, France's CAC 40 surged 2.2 percent and the U.K.'s FTSE 100 added 0.3 percent.