European markets open lower as U.S. tariff threat weighs on sentiment

Published On Feb 28, 2025, 2:06 AM

European markets opened lower due to renewed fears over potential U.S. tariffs on the EU as President Trump indicated he may impose duties on imports. This sentiment has impacted various sectors within the European market, leading to significant losses across major indices such as the Stoxx 600, CAC 40, and DAX. Additionally, corporate earnings reports and economic data from Germany and France are in focus, affecting investor sentiment further.

Stock Forecasts

EWG

Negative

The ongoing uncertainty regarding U.S. tariffs could exert downward pressure on European markets as investors may become more risk-averse. Tariff threats can adversely affect export-oriented companies, particularly in industrial and manufacturing sectors.

ALV

Positive

The reported record profits by Allianz may offer a glimmer of hope for the financial sector, indicating resilience amidst market volatility. However, potential impacts from broader market trends should be considered.

Related News

The next German government faces calls to loosen borrowing rules, slash energy costs and spur innovation. It won’t be easy.

It comes after growing pressure over an anti-corruption investigation in Bangladesh.

Reliance on cheap Russian energy along with brutal competition from China has hit the German economy hard, and President-elect Trump's threat of tariffs are creating more uncertainty.