European Shares Seen Opening Up After Trump's Tariff Delay

(RTTNews) - European stocks may open on a firm note Tuesday after U.S. President Donald Trump struck deals to delay 25 percent import taxes on Canada and Mexico for 30 days, helping avert a trade war for now.

It remains to be seen how China would respond to the new across-the-board 10 percent tariffs that are set to take effect today.

Boston Fed President Susan Collins, Atlanta Fed President Raphael Bostic and Atlanta Fed President Raphael Bostic have warned on Monday that the Trump administration's plans for trade tariffs come with inflation risks, creating uncertainty over the Federal Reserve's rate path.

Asian markets bounced back, while the Canadian dollar, Mexican peso and euro were steady against the U.S. dollar after Trump's tariff reprieve.

China's yuan clocked wild swings in offshore trade. The dollar index nursed losses, helping lift gold prices to a record high. Oil prices fell nearly 1 percent as supply disruption fears eased.

The day's economic calendar remains light, with U.S. reports on job openings and factory orders likely to garner some attention later in the session.

On the earnings front, Merck, PayPal, PepsiCo, Pfizer and Spotify are among the prominent companies due to report their quarterly results before the U.S. opening bell.

U.S. stocks recovered earlier steep losses but still ended notably lower overnight after Trump said tariffs against Mexico would be paused for one month following an agreement on border security to stop the flow of fentanyl and illegal migrants into the U.S.

Investors also digested data showing that U.S. manufacturing grew for the first time in more than two years in January.

The tech-heavy Nasdaq Composite lost 1.2 percent, the S&P 500 shed 0.8 percent and the Dow dipped 0.3 percent.

After the markets closed, Canadian Prime Minister Justin Trudeau announced that proposed U.S. tariffs will be paused for at least 30 days.

European stocks ended sharply lower on Monday after Trump imposed levies on imports from Canada, Mexico and China, and warned tariffs on the European Union will "definitely happen."

The pan European STOXX 600 dipped 0.9 percent. The German DAX tumbled 1.4 percent, France's CAC 40 declined 1.2 percent and the U.K.'s FTSE 100 gave up 1 percent.