(Reuters) – European stocks opened lower on Tuesday, dragged down by auto makers, as Donald Trump’s threat of tariffs on the United States’ biggest trading partners raised concerns that the bloc could face the same fate in a potential global trade war.
The pan-European was down 0.5% as of 0820 GMT, poised to end the three-day rally. The auto sector fell more than 2%, with Stellantis (NYSE: ) and Volkswagen (ETR: ) among the biggest losers.
President-elect Trump has vowed higher tariffs on Canada, Mexico and China, hurting market sentiment following the appointment of Scott Besent as US Treasury secretary. The dollar rose, while world prices fell.
traders and miners were among the worst affected sectors, falling more than 1% each.
Among other stocks, Roche fell more than 1% after its late-stage lung cancer study failed to meet a primary endpoint for overall survival. The Swiss company also plans to buy US biopharma company Poseida Therapeutics for up to $1.5 billion.
Currently, Melrose (LON:) Industrials led gains in the STOXX 600, up 8%, after JP Morgan upgraded its price target on the aerospace company’s stock.
(This story has been reposted to remove extraneous words in section 6)
