Latest News

European shares fall on worries of Trump tariffs

European shares ended lower on Wednesday, following a broad rally earlier in the session, hurt by a drop in energies shares on fears that U.S. Presidentelect Donald Trump could halt fresh approvals for overseas wind jobs.

Trump, who regained the White Home by protecting more than the 270 Electoral College votes required to win the presidency, had actually promised throughout his election project to scrap overseas wind projects by executive order on his first day in office.

Shares of Oersted and Vestas fell 12.8%. each, while the wider energies sector was down 2.6%.

The pan-European STOXX 600 was down 0.5%, with all. local equity markets closing in the red and Spain's IBEX. logging most losses, down 2.9%.

We see less advantage for European equities under a Trump. presidency, equity strategists at UBS stated in a note.

Within European equities, we anticipate the market to focus on. three crucial areas of policy from the brand-new president-elect:. prospective trade tariffs, possible rollback of some green energy. efforts, and implications for Russia-Ukraine and European. defense costs, the note said.

German automakers such as Mercedes-Benz Group and. BMW lost around 6.5% each on fears of prospective import. tariffs under Trump's presidency. However, BMW later downplayed. such fears.

The broader car sector was down 2.3%.

Trump likewise pledged to impose a 10% tariff on imports from all. nations if he won, and said the European Union would have to. pay a huge cost for not purchasing adequate American exports.

Most business noted on the STOXX 600 gather just 40% of. their profits domestically, while a big piece of them comes. from the United States.

Popular Trump Trades - stocks which might benefit or come. under pressure from a Trump presidency - were on the relocation on. Wednesday, with the Wall Street's primary indexes soaring to record. highs on anticipation of lower corporate taxes.

Trump is seen bullish for European defence stocks, provided his. cautions to downsize U.S. military support in the region and. force NATO members to spend 2% or more of their GDP on defence.

An index of Europe's aerospace and defence companies. jumped 2.1% to a record high.

Among earnings-driven moves, Novo Nordisk included. 0.6% after the weight-loss and diabetes drugmaker reported. better-than-expected quarterly sales of its popular Wegovy. weight-loss drug and narrowed its 2024 outlook.

Investors will now shift focus to the U.S. Federal Reserve. and the Bank of England's rate choices anticipated later on in the. week.

(source: Reuters)