European Shares Set For Cautious Open With Focus On Trump's Policies

(RTTNews) - European stocks are seen opening slightly lower on Tuesday as investors react to Trump's inaugural speech and a flurry of executive orders signed by him in the first few hours of his presidency, overturning multiple landmark decisions taken by the Biden administration.

He pulled the U.S. out of the Paris Agreement and the World Health Organization and signed an executive order to delay the ban on short-video application TikTok by at least 75 days.

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

However, Trump held off unveiling China-specific tariffs on his first day in office, focusing instead on global trade practices and compliance with previous agreements. Asian markets were mixed in a muted reaction to Trump's inauguration.

The U.S. dollar pared some overnight losses and gold ticked higher while oil prices were mixed after Trump launched a sweeping overhaul of U.S. energy policy, with plans to boost oil and gas production in the U.S.

In economic releases, U.K. labor market data and ZEW economic sentiment survey results from Germany may garner some attention later in the day.

U.S. stock markets were closed on Monday on account of Martin Luther King Jr. Day holiday.

European stocks closed slightly higher on Monday after reports emerged that the Trump administration will hold off on imposing trade tariffs on his first day in office.

The pan European STOXX 600 ended flat with a positive bias after having hit a three-month high earlier.

The German DAX rose 0.4 percent, France's CAC 40 added 0.3 percent and the U.K.'s FTSE 100 gained 0.2 percent.