European Shares Seeking Rebound As Some Calm Returns

(RTTNews) - European stocks look set to rebound on Tuesday despite the U.S. threat to escalate tariffs against China.

U.S. President Donald Trump has reaffirmed Washington's new tariff policy but signaled his willingness to engage in dialogue with countries seeking more favorable trade terms.

"There could be permanent tariffs and there could also be negotiations... we're going to get fair deals and good deals with every country — and if we don't, we're going to have nothing to do with them," Trump said during a meeting with Israeli Prime Minister Benjamin Netanyahu.

Asian markets advanced, with Japan's Nikkei surging over 5 percent on optimism that tariffs on Japan could be eased through negotiations.

U.S. stock futures pointed higher, Treasuries steadied after Monday's sharp selloff, while the safe havens yen and Swiss franc held near six-month highs.

Gold was poised for its worst three-day decline in over four years, but analysts predict rebound due to haven demand and market uncertainties.

Oil prices jumped more than 1 percent after tumbling to a four-year low the previous day.

U.S. stocks ended mixed overnight after a volatile session. The Dow shed 0.9 percent to extend declines for a third day running as President Trump threatened even higher tariffs against China and the White House dismissed speculation of some sort of tariff pause.

Trump threatened to impose an additional 50 percent tariff on Chinese goods unless the country withdraws its new 34 percent tariff on U.S. goods.

He also threatened to terminate negotiations with China and said that "tough but fair parameters are being set" for trade talks with other countries.

The S&P 500 dipped 0.2 percent while the tech-heavy Nasdaq Composite plunged over 5 percent before reversing course to end marginally higher.

European stocks fell to their lowest is more than a year on Monday as investors fled to safe-haven assets amid recession worries.

The pan-European STOXX 600 plunged 4.5 percent. The German DAX slumped 4.1 percent, France's CAC 40 plummeted 4.8 percent and the U.K.'s FTSE 100 lost 4.4 percent.