European Shares Seen Lower As Investors Brace For Impact On 'Liberation Day'

(RTTNews) - European stocks may open notably lower on Monday as investors look ahead to "Liberation Day" amid much uncertainty about the final scope and level of U.S. reciprocal tariffs on many trading partners.

U.S. President Donald Trump's 'Liberation Day' tariff plan will take effect globally on April 2.

Trump said on Sunday that reciprocal tariffs will include all nations, not just a smaller group of 10 to 15 countries with the biggest trade imbalances.

A slew of tariffs enacted by the Trump administration will go into effect on Wednesday — including a 25 percent levy on "all cars that are not made in the United States."

In a wide-ranging Saturday interview with NBC News, Trump said he "couldn't care less" if foreign automakers raise their prices due to these new tariffs.

The European Union is ready to respond with tariffs of its own, but new reports suggest that the block was preparing a list of concessions to offer to Trump.

Markets also look forward to a slew of U.S. economic data this week, including reports on manufacturing, service sector activity, trade and job openings.

The highly anticipated March jobs report will be released on April 4 and any outcome below the 140,000-gain expected would likely add to recession fears.

Fed Chair Jerome Powell is scheduled to speak on the economic outlook on Friday. Other central bank speakers include Michael Barr and Christopher Waller.

Closer home, German retail sales and inflation figures may garner some attention later in the day.

Asian markets were deep in the red, with Australia, South Korea, Hong Kong and Japan leading regional losses.

An official survey showed China's manufacturing activity expanded at its fastest pace in one year in March, suggesting Beijing's stimulus measures were helping prop up an economic recovery.

Gold hit a new record high above $3,100 per ounce in Asian trading, buoyed by falling U.S. Treasury yields and a weakening dollar.

Oil prices eased as Trump warned of possible secondary tariffs on Russian buyers if he feels Moscow is blocking his efforts to end the war in Ukraine.

U.S. stocks ended lower for a third straight session on Friday while Treasury yields fell as signs of reinvigorated inflation pressures amid souring consumer sentiment heightened concerns about the health of the U.S. economy.

Data showed the Federal Reserve's preferred inflation gauge of "core" PCE rose 0.4 percent month-on-month in February and 2.8 percent year-on-year, continuing a stubborn plateau on the path to the Fed's 2 percent target.

A measure of U.S. consumer sentiment in March plummeted to its lowest level since November 2022 while long-term inflation views rose to 32-year high of 4.1 percent.

The tech-heavy Nasdaq Composite plummeted 2.7 percent to a six-month closing low, the S&P 500 plunged 2 percent and the Dow slumped 1.7 percent.

European stocks closed lower on Friday amid concerns about an escalating trade war. The pan European STOXX 600 fell 0.8 percent to extend losses for a third consecutive session.

The German DAX gave up 1 percent, France' CAC 40 declined 0.9 percent and the U.K.'s FTSE 100 finished marginally lower.