European stock markets closed higher after an initial dip, driven by gains in automakers following signals that President-elect Trump will not implement new tariffs on his first day in office. Traders welcomed the news, easing concerns about global growth and inflation. The Stoxx Europe 600 Index rose slightly, while London's FTSE 100 reached a fresh record high.
Europe an stocks closed higher, recovering from earlier declines as automakers outperformed on positive signals regarding US President-elect Donald Trump 's stance on tariffs. The Stoxx Europe 600 Index gained less than 0.1 percent, reversing a dip of as much as 0.2 percent. The benchmark remains about 1 percent below its September record high. Daimler Truck Holding AG and BMW AG surged over 2 percent. London's FTSE 100 index reached a record high for the second consecutive session, closing 0.
2 percent higher at a new peak, although slightly below its intraday high. Traders had been apprehensive that Trump's threats of tariffs on China and other nations could fuel inflation and hinder global growth. There was a wave of relief in global markets on Monday after reports surfaced that Trump stated he would not impose US tariffs immediately upon his inauguration. S&P 500 and Nasdaq futures also experienced gains as the US dollar weakened. US markets were closed for the Martin Luther King Jr. Day holiday. The Australian sharemarket is projected to rise, with futures indicating a 0.2 percent gain at the open. The ASX reported earlier Monday that the incoming administration intends to issue a memorandum directing federal agencies to analyze existing policies and trade relationships with China, Canada, and Mexico. However, the report refrained from calling for immediate new tariffs on these three major US trading partners. 'The report on tariffs triggered the move, which has also impacted foreign exchange markets and lifted the euro versus the dollar,' stated Andrea Tueni, head of sales trading at Saxo Banque France. Shares of Telefónica SA declined approximately 3 percent. Spain's Socialist government unexpectedly ousted the telecommunications company's long-standing executive chairman and chief executive officer. Konecranes OYJ shares fell after its president and CEO Anders Svensson opted to join Hexagon AB after about two years in the role. Belimo Holding AG rose as the Swiss manufacturer of heating, ventilation, and air conditioning equipment reported full-year sales exceeding estimates. This week also highlights the annual gathering of government and business leaders in Davos, Switzerland, as well as upcoming earnings reports
STOCK MARKET TARIFFS DONALD TRUMP EUROPE AUTOMOBILE INDUSTRY
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