New statements of the White House leader about the aim of double the duties of iron importing and aluminum struck the shares. Investors are afraid of a new circulation of misunderstandings in the global trade.
European stock indices on Monday opened with a reduction after growth in May. The reason is US President Donald Trump’s desire to increase steel and aluminum import duties from 25% to 50%, which can continue to intensify trade in the world. Reuters reported this on Monday, June 2.
The Stoxx 600 index, which covers companies from all over Europe, dropped 0.5%. In May, he showed an increase by almost 4%.
The European Union said he was ready for counter -meters in case of raising tariffs. The promotions of metallurgical companies, in particular arcelormittal and aperm, fell by about 1%.
Automatic manufacturers have experienced the greatest pressure: Stellantis shares are reduced by 3% in Milan exchange, and Mercedes-Benz, BMW and Volkswagen have lost from 1.4% to 2%. The auto industry sector index fell 1.6%.
The shares of the luxury segment, which largely depend on exports to the United States, are also affected. The European luxury index was reduced by 1.6%.
“The latter statement continues to tighten … It also indicates that trade negotiations may not move in the right direction,” said Ipek Ozkardi, senior analyst at the Swissquote Bank. – “Trade voltage has a direct impact on sales of expensive items, as the United States is one of the largest sales markets for the leading European exporters.”
The German Dax index reduced by 0.6%. Most European exchanges are also bargained.
At the same time, energy sector shares have grown against the back of the news of OPEC+ countries’ decision to increase oil manufacture in July.
The index of defense companies also showed less importance related to increasing intensity between Russia and Ukraine.
Remember, the US Federal Court of Appeal on Thursday, May 29, temporarily allowed the Trump administration to perform duties.
It was later found that the United States had doubled the roles of import steel – up to 50%.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.