European equity issuance to cautious start with special focus on Trump’s insurance policies

(RTTNews) – European stocks opened sharply lower on Tuesday as investors reacted to Trump’s inaugural speech and a slew of executive orders he signed in the first few hours of his presidency, reversing more than one landmark decision that it was adopted by the Biden administration.

He pulled the US out of the Paris Agreement and the World Health Group and signed an executive order extending the ban on instant video app TikTok for 75 days.

Trump talked about 25 percent tariffs on Canada and Mexico as early as February 1, citing concerns about illegal immigration at the U.S. border.

By contrast, Trump delayed unveiling tariffs on China more than labor on the first day, instead focusing on global trade practices and compliance with previous agreements. Asian markets were collectively mixed in a muted response to Trump’s inauguration.

The U.S. dollar pared some overnight losses and gold rose, while oil prices were mixed after Trump launched a sweeping overhaul of the U.S. energy landscape with plans to take over U.S. oil and fuel

In the financial releases, UK labor market data and ZEW Financial Sentiment Insights results from Germany could get some attention later in the day.

US stock markets were closed on Monday for the Martin Luther King Jr. holiday.

European shares rose sharply on Monday after concerns emerged that the Trump administration would protect itself from imposing trade tariffs as part of its first day.

The pan-European STOXX 600 index ended unchanged with a positive bias after earlier hitting a three-month high.

Germany’s DAX rose 0.4 percent, France’s CAC 40 added 0.3 percent and Britain’s FTSE 100 gained 0.2 percent.

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