Source: Sharecast
Ahead of the 9 July tariff deadline, Trump said on Thursday: “We’re probably going to be sending some letters out, starting probably tomorrow, maybe 10 a day to various countries saying what they’re going to pay to do business with the US."
The pan-European Stoxx 600 index opened 0.5% lower at 541.05, with all major indices across the continent recorded losses.
The negative open comes despite a record close for the S&P 500 and Nasdaq on Wall Street overnight, after non-farm payrolls data came in well ahead of forecasts – despite the strong data prompting economists to scale back their interest-rate cut expectations. US markets will be closed on Friday for the Fourth of July national holiday,
"Optimism is evaporating at the end of the week, as the US tariff deadline looms and the signs are that many countries will face higher duties than expected," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"The Trump administration is running out of time to do specific detailed trade deals. and the President has said that instead blocs of nations will be informed by letter that they’ll face tariff rates of around 20-30%. [...] Talks with the European Union are continuing and although a deal is expected, it’s likely to be an eleventh-hour agreement."
In economic news on Friday, German factory orders slumped 1.4% in May following a revised 1.6% increase in April. This was the first decline since January and well below the 0.1% fall expected by analysts.
Mining stocks in London were among the worst performers of the morning, including Anglo American, Antofagasta and Glencore.