{"id":61962,"date":"2025-07-16T05:42:08","date_gmt":"2025-07-16T05:42:08","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2025\/07\/16\/european-shares-seen-mostly-lower-as-tariff-risks-mount\/"},"modified":"2025-07-16T05:42:08","modified_gmt":"2025-07-16T05:42:08","slug":"european-shares-seen-mostly-lower-as-tariff-risks-mount","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2025\/07\/16\/european-shares-seen-mostly-lower-as-tariff-risks-mount\/","title":{"rendered":"European Shares Seen Mostly Lower As Tariff Risks Mount"},"content":{"rendered":"
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European stocks may open broadly lower on Wednesday as trade tensions escalate.<\/p>\n

After striking a trade deal with Indonesia, U.S. President Donald Trump announced potential tariffs on imported pharmaceuticals by month’s end, followed by semiconductor levies.<\/p>\n

Trump on Tuesday said Indonesia will buy 50 Boeing jets, energy and farm goods worth billions. In return, Indonesian exports will face a 19 percent tariff and the United States would not pay any tariffs on its goods. <\/p>\n

Trump also said that a trade agreement with Vietnam was nearly complete and that the United States is close to getting full trade access to India. <\/p>\n

Meanwhile, the Wall Street Journal reported that the European Union is preparing a second list of U.S. products, including aircraft, machinery and wines worth around $77 billion, that would face retaliatory duties if the bloc doesn’t reach a deal by Trump’s Aug. 1 deadline.<\/p>\n

A spokesperson at the European Commission reportedly said the list was drawn up through a “four-week consultation with Member States, stakeholders and industry.”<\/p>\n

U.S. stock futures slipped ahead of earnings results from Bank of America, Goldman Sachs, Morgan Stanley and Johnson & Johnson due later in the day.<\/p>\n

June’s producer price inflation report is due later in the day after Tuesday’s CPI data suggested tariffs were starting to have on impact on prices. <\/p>\n

Fed commentary will also be in focus, with Richmond Fed President Thomas Barkin and Fed Governor Michael Barr scheduled to speak. <\/p>\n

The European economic calendar remains light, with U.K. inflation data and foreign trade from the euro area likely to garner some attention. <\/p>\n

Asian markets<\/span> were mostly lower due to ongoing uncertainty around U.S. tariffs. <\/p>\n

Expectations of tariff-driven price pressures boosted the dollar and U.S. Treasury yields, while gold held firm around $3,340 per ounce levels. Oil ticked higher on expectations of consistent demand from the U.S. and China.<\/p>\n

Overnight, U.S. stocks ended mixed after the release of in-line inflation data and mixed earnings from major banks.<\/p>\n

Data showed U.S. CPI increased 0.3 percent sequentially in June, putting the annual inflation rate at 2.7 percent and matching consensus estimates. <\/p>\n

The so-called core CPI grew 0.2 percent month over month and 2.9 percent year-on-year.<\/p>\n

On the earnings front, JPMorgan Chase beat profit estimates but a key profitability metric fell short of expectations.<\/p>\n

While Citigroup beat Wall Street estimates for second-quarter profit, Wells Fargo cut its full-year guidance for net interest income. <\/p>\n

Investing giant BlackRock said a large client pulled money during the second quarter.<\/p>\n

The tech-heavy Nasdaq Composite edged up by 0.2 percent to reach a new record high as Nvidia said it would “soon” resume H20 AI chip sales to China. The S&P 500 eased 0.4 percent and the Dow lost 1 percent.<\/p>\n

European stocks closed lower for a third consecutive session on Tuesday as rising U.S. inflation spurred bond yields. The pan European STOXX 600 dipped 0.4 percent.<\/p>\n

The German DAX gave up 0.4 percent, France’s CAC 40 declined half a percent and the U.K.’s FTSE 100 shed 0.7 percent. <\/p>\n<\/p>\n

Market Analysis<\/p>\n<\/div>\n