European markets set for broadly positive open as traders assess tariff landscape

• The U.K.'s FTSE is expected to open unchanged, while Germany's DAX and France's CAC are projected up around 0.25%, and Italy's FTSE MIB up almost 0.3%
• European officials expressed concern over Trump's tariff action, with the European Parliament announcing it has suspended the U.S.-EU trade deal from last summer
• Trump indicated the 15% duty would go into effect immediately and warned of additional levies coming in the next few months, while threatening further tariff increases for countries that 'play games'

European Markets Eye Modest Gains Amid Trump Tariff Uncertainty

European stocks are expected to open flat to slightly higher on Tuesday as investors navigate the evolving global trade landscape following President Trump's latest tariff announcements. The UK's FTSE 100 is projected to open unchanged, while Germany's DAX and France's CAC are forecast up approximately 0.25%, and Italy's FTSE MIB up nearly 0.3%, according to IG data.

Regional markets closed lower on Monday following Trump's introduction of a blanket 15% tariff on U.S. imports, announced over the weekend with immediate effect, though official documentation timing remains unclear. The president indicated additional levies would follow in coming months and threatened increased tariffs for countries that "play games," despite the Supreme Court striking down his previous tariff authority last week.

European Response

European officials expressed concerns over the tariffs threatening existing U.S.-EU trade agreements. In a significant development, the European Parliament suspended the U.S.-EU trade deal agreed last summer. This marks an escalation in transatlantic trade tensions.

Market Impact

Asian equities also declined Monday as investors processed the new trade policy implications. Tuesday saw mixed trading in Asia as markets continued weighing renewed tariff threats. The global equity selloff reflects investor concerns about potential disruptions to international trade flows and economic growth.

Upcoming Catalysts

Market participants await corporate earnings releases and French business confidence data to gauge economic sentiment amid the uncertain trade environment. The Standard Chartered CEO commented on continued intense U.S.-China competition, highlighting ongoing geopolitical economic pressures.

The modest recovery attempt in European markets suggests cautious optimism as traders assess the full implications of the new tariff regime.