European Shares Poised For Positive Start Despite Tariff Worries

(RTTNews) - European stocks are seen opening on a positive note Wednesday after U.S. President Donald Trump hinted at progress in U.S.-EU trade talks.

Trump said during a Cabinet meeting at the White House that the EU had been treating the U.S. very nicely recently in trade talks and a decision on tariffs is close.

Meanwhile, the EU is "working flat out" to secure a trade deal with the U.S., but was ready to retaliate if talks failed, the European official leading talks with the Trump administration reportedly said.

The Financial Times reported that European Union negotiators are closing in on a trade deal with the U.S. that would cement higher tariffs than those granted to the U.K.

U.S. stock futures edged lower as tariff-related worries intensified with the announcement of new rates on U.S. imports of copper and pharmaceuticals.

After announcing new tariffs on Japan and other trader partners, Trump said he has sent similar letters to leaders of other countries, including Malaysia, Kazakhstan, South Africa, Myanmar, Laos, Thailand, Bangladesh, Indonesia, Tunisia, Bosnia and Herzegovina, Serbia and Cambodia.

Investors also await Fed commentary on tariffs and monetary policy.

The release of the Federal Open Market Committee's minutes from its last meeting due later in the day may reveal if a September cut is likely.

Asian markets were trading mixed, with trade headlines and Chinese inflation data in focus.

Data showed China's consumer price inflation grew slightly in June while producer prices plunged 3.6 percent in the month, marking its largest decline since July 2023.

The dollar held at a more than two-week high versus the yen while gold held a decline to trade below $3,300 per ounce.

Oil prices eased from two-week highs after industry data showed a sharp rise in U.S. crude inventories.

Overnight, U.S. stocks fluctuated before ended narrowly mixed due to ongoing uncertainty about President Trump's tariff plans.

Trump said Tuesday his extended Aug. 1 deadline for his "Liberation Day" tariffs will stick, after previously suggesting it wasn't "100 percent firm."

Adding to the uncertainty, he also announced a 50 percent tariff on copper imports as part of a set of looming sectoral tariffs and threatened a 200 percent tariff on pharmaceutical imports.

The tech-heavy Nasdaq Composite inched up marginally while the S&P 500 ended with a negative bias and the Dow dipped 0.4 percent.

European markets closed on a positive note Tuesday as investors waited for an update on the U.S.-EU trade deal.

The pan European STOXX 600 gained 0.4 percent. The German DAX and France's CAC 40 both rose by 0.6 percent while the U.K.'s FTSE 100 added half a percent.