European Stocks Slide Amid Trump's Tariff Threat

European shares fell as Trump's tariff threats worried investors about a potential global trade war. Automakers led the decline on the STOXX 600 index. The market sentiment declined despite Scott Bessent's nomination for U.S. Treasury Secretary. Roche shares fell, while Melrose Industries rose.

European stocks opened lower on Tuesday, impacted by automakers' decline, as U.S. President-elect Donald Trump's tariff threats stirred fears of a global trade conflict.

The pan-European STOXX 600 index dropped by 0.5%, poised to end a three-day winning streak, with the auto sector suffering a significant loss of over 2%, as companies like Stellantis and Volkswagen faced the brunt. Trump's promised tariffs on Canada, Mexico, and China created a wave of uncertainty, overshadowing the positive sentiment generated by Scott Bessent's appointment as the U.S. Treasury secretary.

Other sectors such as banks, retail, and miners also faced setbacks, with each seeing declines exceeding 1%. Roche saw a drop of over 1% following a failure in its lung cancer study. In contrast, Melrose Industries recorded a substantial 8% gain, highlighted by an upgraded price target from JP Morgan on its aerospace sector stocks.

(With inputs from agencies.)