Europe open: Shares mixed as investors eye latest tariff threats, Fed meeting

(Sharecast News) - European shares were mixed at the open on Tuesday as investors eyed the latest round of US President Donald Trump's erratic tariff policy and the start to the Federal Reserve's two-day policy meeting. The pan-regional Stoxx 600 index was up 0.02% at 537 points, with Germany's DAX down 0.09%. Britain's FTSE 100 made a strong start after a Monday's May Day public holiday, gaining 0.36%.

Wall Street closed lower on Monday as potential trade talks were firmly in focus throughout the session on reports that the White House was nearing a deal with India after the South Asian nation proposed zero tariffs on steel, auto components and pharmaceuticals on a reciprocal basis, up to a certain amount of imports.

Trump also authorised government agencies to slap a 100% tariff on films produced abroad, stating that efforts from other nations to attract US film productions was a "national security threat".

"After a nine-day winning streak US equities finally fell under the pressure of fresh uncertainty. Safer assets were back on the menu, with gold prices climbing to a one-week high as investors rushed to safer ground after President Trump threatened fresh tariffs," said Hargreaves Lansdown analyst Matt Britzman.

"His latest targets include foreign-made movies and pharmaceuticals, adding to the uncertainty around global trade. All eyes are now on the Fed, with markets watching closely to see if it holds firm on rates despite pressure from the White House."

In equity news, Associated British Foods on Tuesday confirmed it was in talks on a potential sale of its Allied Bakeries unit with Hovis bread owner Endless.

Deliveroo has agreed terms for a £2.9bn takeover by US-based delivery platform DoorDash.

Reporting by Frank Prenesti for Sharecast.com