European Shares Shrugging Off Potential Trade War With US
European shares have risen. The DAX and CAC are pointing at improvement, as the former increased 1.15% and the latter lifted 0.81%. Investors are now less convinced that Donald Trump will impose the steel and aluminum tariffs. The majority believes that the President’s pledge was more of an attempt to draw everyone’s attention. But, Trump is stubbornly refusing to back down, despite the opposition from his own administration’s. As a response to his decision, the European Commission has offered 25% tariffs on imports of the US steel, clothing and other industrial production. Still, there is hope that Donald Trump’s administration will convince the President to back down. In that case, EU wouldn’t have to sign the order.
This week’s biggest event is European Central Bank. Interest rate is expected to remain untouched, but Mario Draghi’s post meeting comments will be closely listened to as investors will be looking for hints about exiting the asset purchase program. Inflation is still soft. Eurozone Consumer Price Index fell from 1.3% to 1.2%. Retail PMI increased to 52.3. Tomorrow, Eurozone will publish revised Gross Domestic Product and France will feature trade balance.