Sam Meredith , David Reid
European Markets: FTSE, GDAXI, FCHI, IBEX
The U.S. is considering tariffs on about $11 billion of EU products ranging from aircraft parts to wine. The move comes as the President Donald Trump administration looks to retaliate against EU subsidies for Airbus, which the World Trade Organization ruled had “adverse effects” on America.
Other European-listed stocks such as Rolls-Royce, Thales, Dassault Systemes, BAE and Leonardo were seen as among the most exposed to Lighthizer’s threat and these firms fell lower Tuesday afternoon.
Drink maker stocks also went on a wild ride with Remy Cointreau, Pernod Ricard and Davide Campari all suffering losses. Other items on the U.S. list included some European-produced cheese, passenger helicopters, as well as certain types of motorcycles and ski suits.
The announcement comes shortly after a World Trade Organization ruling said the U.S. was guilty of illegal subsidies in production of Boeing aircraft.
Concerns about U.S. earnings have dragged on global equities in recent sessions, though a robust jobs report last week helped to soothe frayed nerves.
Breaking from the overall negative sentiment, Alcon, which was spun off from drugmaker Novartis Tuesday, surged 41 percent following its debut on the SIX Swiss Exchange. Novartis, on the other hand, dropped 2 percent.
May will be at an emergency summit on Wednesday, when all 28 EU states will vote on whether to grant the U.K. an additional Brexit extension.
Elsewhere, Commerzbank is reportedly set to decide whether or not to continue merger talks with Deutsche Bank on Tuesday.