European markets traded lower on Monday, with investor attention on the inauguration of U.S. President-elect Donald Trump later in the day.
The pan-European Stoxx 600 index shed 0.15% by 1:10 p.m. London time, with most sectors in negative territory. Some major bourses bucked the trend to edge into positive territory, with London’s FTSE 100 up 0.11%.
Investors in the region are awaiting news on whether Trump will follow through on promises to impose new tariffs on U.S. imports after his inauguration.
U.S. stocks rallied after his November electoral victory, as investors bet on deregulation and lower taxes.
Globally, however, there are concerns over his pledge to implement universal tariffs on imported goods to the United States, with economists saying the policy is likely to contribute to inflation and put pressure on U.S. consumers. At a pre-inauguration dinner Sunday night, Trump said he plans to sign close to 100 executive orders on the first day of his second presidency.
Investors in Europe are also gearing up for the World Economic Forum in Davos, Switzerland, this week. At the annual event, political and business leaders, among others, will gather in the Alpine resort for a wide range of debates, from how to increase economic growth to the challenges that artificial intelligence poses. The forum begins on Monday, but steps up a gear on Tuesday.
There are no major earnings or data releases slated for release in Europe on Monday. U.S. financial markets are closed on Monday for Martin Luther King Jr. Day.
