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European markets were set to start Tuesday's trading day in positive territory after a four-day losing streak as red-hot tariff tensions rage on around the world.
Stocks sank Monday, with the pan-European Stoxx 600 ending the day around 4.5% lower. This marked its lowest closing level since January 2024. Key regional indices including the U.K.'s FTSE 100, the German DAX and France's CAC 40 also all closed sharply lower.
Global equity markets have been rocked by the frequent updates around U.S. President Donald Trump's tariffs regime in recent days as tensions between the U.S. and its trading partners do not appear to be easing.
Speculation on Monday about a potential tariff pause was quickly shut down by the White House, while Trump threatened to hike tariffs on China by another 50% unless it scrapped retaliatory duties. Beijing last week imposed a 34% tariff on American products in response to Trump announcing his full list of so-called reciprocal tariffs.
Overnight, China's Commerce Ministry said it "resolutely opposes" Trump's threat of escalating tariffs, and vowed to take countermeasures to safeguard its own rights and interests.
Asia-Pacific markets were however broadly higher Tuesday, rebounding previous session's losses.
Also on Monday, European Commission President Ursula von der Leyen said the EU had offered Trump a "zero-for-zero tariffs" deal for industrial goods, and reiterated that the bloc was keen to negotiate but was also prepared to impose countermeasures.
Trump promptly rejected the deal.
U.S. stock futures were last higher after the S&P 500 extended its losses for a third day Monday in yet another volatile trading session on Wall Street.
— CNBC's Anniek Bao contributed to this report.
European markets set to open higher
European markets were on track to open in the green after recording losses Monday.
According to IG data, the U.K.'s FTSE 100 was last set to rise around 170 points to 7,837, Germany's DAX was on track to gain roughly 400 points to 20,150 and France's CAC 40 was set to add 155 points to 7,067. Italy's FTSE MIB was last on course to rise 554 points to 32,696.
— Sophie Kiderlin
China says it will ‘fight to the end’ after Trump threatens 50% additional tariffs
China's Commerce Ministry said it "resolutely opposes" U.S. President Donald Trump's threat of escalating tariffs, and vowed to take countermeasures to safeguard its own rights and interests.
The comments came after Trump said he would impose an additional 50% duties on U.S. imports from China Wednesday, if Beijing does not withdraw the 34% tariff it imposed on American products last week.
"The U.S. threat to escalate tariffs on China is a mistake on top of a mistake," the statement said, according to a CNBC translation. "China will never accept it. If the U.S. insists on its own way, China will fight to the end."
Read the full story here.
—Anniek Bao
Trading volume boomed as Trump’s tariffs shook stocks for a third day
Market participants traded about 29 billion shares on Monday, resulting in the highest volume day in at least 18 years, according to FactSet and Nasdaq Trader.
It was a rocky day for stocks, with the S&P 500 briefly touching bear market territory and the Dow Jones Industrial Average seeing a swing of 2,595 points from its low to the high of the session.
Monday's volume surpassed Friday's volume of 26.77 billion shares, as well as the 10-day average volume of 16.94 billion shares.
— Gina Francolla, Darla Mercado
English (US)