Europe open: Stoxx slips as 'Trumpcession' fears grip global markets
By Frank Prenesti
Date: Tuesday 11 Mar 2025
(Sharecast News) - European markets slipped into the red on Tuesday after a sell-off on Wall Street overnight amid fears of a "Trumpcession" driven by US tariffs.
The pan-regional Stoxx 600 index fell 0.02% in early deals, with Germany's DAX was 0.7% higher and France's CAC 40 up 0.68%.
Global markets have been falling over fears that tariffs imposed by US President Donald Trump will fuel inflation and lead to a recession in the world's largest economy.
The S&P 500 fell 2.7%, the Dow Jones 2% and the tech-heavy Nasdaq 4% on Monday as investors dumped stock in the so-called "magnificent seven" - Alphabet, Amazon, Apple, Microsoft, Meta, Nvidia and Tesla.
Tesla's shares had their worst day in almost five years, falling 15% as investors worry about declining sales.
Trump started a trade war with America's three largest trading partners, increasing tariffs on China by 10% initially before lifting them to 20%. He planned 25% levies on Canada and Mexico but performed a u-turn two days after they came into effect but now claims he will still impose them next month.
"Markets are jittery and volatility seems like the only certainty while the White House pushes hard to usher in a new era, seemingly happy for stock markets to be collateral damage," said Hargreaves Lansdown analyst Matt Britzman.
In equity news, shares in Swiss power company BKW slumped after annual results.
German arms maker Rheinmetall was higher on hopes of higher defence spending as talks started in Saudi Arabia between US and Ukraine officials on a ceasefire in the war with Russia.
Volkswagen shares were up as the German auto giant targeted a 5% rise in revenue this year.
Reporting by Frank Prenesti for Sharecast.com
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