European Stocks Hold Steady Amid Tariff Concerns

European stock markets traded within tight ranges on Tuesday as investors weighed the impact of renewed U.S. tariffs under President Donald Trump, sparking concerns over global economic growth.

US Tariffs Drive Market Uncertainty

Global stock markets initially started the week on a positive note. However, fresh U.S. tariffs on aluminum and steel, alongside existing levies on Chinese imports, have introduced a sense of caution among investors.

Market participants are increasingly wary of escalating trade tensions, fearing potential disruptions to global supply chains and a slowdown in economic growth.

European Central Bank (ECB) Vice President Luis de Guindos warned on Monday that these newly announced tariffs could fuel economic uncertainty. Trump's plan to impose a 25% tariff on all steel and aluminum imports into the U.S. marks a significant escalation in global trade conflicts.

Last month, the ECB responded to sluggish economic growth by implementing its fifth interest rate cut since June, leaving the door open for further monetary policy easing.

Despite prevailing concerns, there was a glimmer of positive economic news on Tuesday. French unemployment unexpectedly declined in the final quarter of 2024, with the jobless rate falling to 7.3% from 7.4% in the previous quarter, offering a slight boost to investor sentiment.

Oil Prices Climb on Supply Fears

Crude oil prices continued their upward trend on Tuesday, building on gains from the previous session, as supply concerns intensified. However, further increases were tempered by fears that escalating trade tariffs could hinder global economic growth.

Both major oil benchmarks saw nearly 2% gains in the previous session following three consecutive weeks of losses.

Fresh supply concerns arose after a Politico report on Monday suggested that European nations are planning to seize Russia’s shadow fleet. Additionally, U.S. sanctions have significantly disrupted Russia’s oil shipments to China and India—two of the world's largest crude oil importers—further complicating the global supply landscape.

As investors monitor these developments, market volatility remains a key risk, with economic and geopolitical uncertainties shaping the outlook for global stocks and commodities.

(Sources: investing.com, reuters,com, ChatGPT)