This is CNBC's live blog covering European markets.
European stocks were lower Tuesday as investors assess the global implications of U.S. President-elect Donald Trump's plans to hike tariffs on China, Mexico and Canada.
The regional Stoxx 600 was down 0.63% at 9:24 a.m. London time as all sectors retreated. Autos led losses, down 1.67%.
The index had ended in the green for a third straight session on Monday, as global momentum in equities lifted Wall Street's Dow Jones Industrial Average to a new record.
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Trump on Monday evening said one of his first acts in office would be to impose an additional 10% tariff on all Chinese goods entering the U.S., and threatened a 25% tariff on products from Mexico and Canada, ending a regional free trade agreement.
Economists have previously flagged the potential inflationary impact of Trump's fiscal plan, which could see the Federal Reserve cut interest rates at a slower pace. That in turn could boost the U.S. dollar against currencies such as the euro and sterling.
"Immediate market reaction looks negative," analysts at Maybank said in a note Tuesday.
Money Report
"However, these tariffs do differ quite a bit from what Trump had mentioned during his campaign of 60% for China and a 10% broad tariff for the rest of the world. Whilst the market maybe cautious of the risk that Trump maybe incrementally introducing the tariffs, we do note the possibility that the final imposition may not be quite the same as what was proposed by him."
Europe is quiet on the data and earnings front Tuesday.
Investors will continue to analyze the latest merger and acquisition news from the banking sector, after UniCredit offered to buy its fellow Italian lender Banco BPM for roughly 10 billion euros ($10.5 billion).
In the United States, the Fed will release minutes from its November meeting which delivered a quarter percentage point rate cut.
U.S. stock futures were flat in the early hours, while Asia-Pacific markets were mixed.
Europe stocks set to open lower
European stocks were last seen opening lower Tuesday, according to IG data.
Germany's DAX was on course to open 111 points lower at 19,301, France's CAC 40 lower by 53 points at 7,206, and the U.K.'s FTSE 100 lower by 33 points at 8,262.
— Jenni Reid
Gold plunges 3% as Trump Treasury pick and potential Israel-Hezbollah truce fuel risk-on mood
Gold prices lost about 3% after President-elect Donald Trump picked Scott Bessent as his Treasury secretary, with reports of Israel and Hezbollah nearing a ceasefire deal also eroding the safe-haven metal's appeal.
Spot prices of the yellow metal dropped 3.44% to $2,616.80 per ounce, according to data from Factset. Gold futures on the New York Mercantile exchange were trading at $2,628.5.
"The ~$100 wipeout in Gold today is as severe in size & pace as the post U.S. election selloff on Nov 6th," MKS Pamp's head of metals strategy, Nicky Shiels said.
Read the full story here.
— Lee Ying Shan
Trump vows an additional 10% tariff on China, 25% tariffs on Canada and Mexico
President-elect Donald Trump plans to raise tariffs by an additional 10% on all Chinese goods coming into the U.S., according to a post Monday on his social media platform Truth Social.
The post immediately followed one in which Trump said his first of "many" executive orders on Jan. 20 would impose tariffs of 25% on all products from Mexico and Canada.
Trump is set to be inaugurated as the next U.S. president on Jan. 20.
—Evelyn Cheng
CNBC Pro: Barclays says these global stocks are ripe for share buybacks — and analysts give one 45% upside
European equity markets might look "gloomy" right now, but Barclays noted that one investment strategy has delivered "solid outperformance" over recent months.
"Buyback strategies remain a bright spot for Europe, with strong volumes and returns. Amid a gloomy equity market, our buyback announcement basket (BCEUBUYB) has outperformed by 4.6% since Oct," the investment bank's strategists wrote in a Nov. 21 research note.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
Trump vows an additional 10% tariff on China, 25% tariffs on Canada and Mexico
President-elect Donald Trump plans to raise tariffs by an additional 10% on all Chinese goods coming into the U.S., according to a post Monday on his social media platform Truth Social.
The post immediately followed one in which Trump said his first of "many" executive orders on Jan. 20 would impose tariffs of 25% on all products from Mexico and Canada.
Trump is set to be inaugurated as the next U.S. president on Jan. 20.
—Evelyn Cheng
Dow and S&P hit all-time highs
The Dow Jones Industrial Average and the S&P 500 both hit all-time highs during Monday morning's session, as investors rejoiced an improved outlook for equities under Treasury pick Scott Bessent.
The Dow gained more than 1% in early deals while the S&P traded more than 0.4% higher.
Investors predict that Bessent might help mitigate some of Trump's most extreme protectionist policies, in particular trade tariffs.
— Karen Gilchrist
CNBC Pro: Hedge fund bets on a key oil and gas supply chain stock, expecting 300% upside
Shares of a critical player in the shallow water oil and gas drilling industry, have received renewed backing from a hedge fund, with potential projected returns of 300% to 400%.
The investment case is strengthened by several fundamental market dynamics, including a lack of supply with future demand expected to rise, according to the hedge fund manager.
CNBC Pro subscribers can read more here.
— Ganesh Rao
