Amid Trump trade concerns, European stocks decline, and French lenders withdraw

Europe's STOXX 600 index opened lower on Wednesday, with automobile stocks again under pressure due to President Trump's proposed trade tariffs. Additionally, a significant decline in French bank stocks weighed on the country's benchmark index.

As of 0825 GMT, the STOXX 600 was down 0.2%, ending a three-day rally on Tuesday.

Investor concerns remain over the potential targets for the next round of tariffs, following President-elect Donald Trump's commitment to impose hefty tariffs on major trading partners like Mexico and China.

European auto stocks dropped for the second consecutive day, with the sector facing significant losses as the impact of Trump's tariffs on Mexican imports to the U.S. is expected to hurt European car manufacturers.

French banks also struggled, with shares of Societe Generale and BNP Paribas each falling by around 2%. Meanwhile, the risk premium on French debt rose to its highest level since 2012, signaling growing investor concern over the new government's fiscal policies and budget cuts.

France's CAC 40 index lost 1%.

Investors are also closely watching U.S. inflation data, set to be released later in the day, after the Federal Reserve's minutes from its November meeting revealed that policymakers opted to refrain from providing clear guidance on the future direction of monetary policy due to ongoing economic uncertainties.

In individual stock news, Grifols dropped 7% following reports that Canadian investment fund Brookfield may abandon its plan to acquire the Spanish pharmaceutical company.

 

 

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.