Europe midday: Shares power ahead despite more Trump tariff turmoil

(Sharecast News) - European shares were higher on Monday despite US President Donald Trump's announcement that he would slap 25% tariffs on all steel and aluminium imports. The pan-regional Stoxx 600 index was up 0.39% at 544.88points with major bourses also higher. Trump on Sunday said the new tariffs would apply in addition to existing metals duties, adding that he may impose further tariffs later in the week.

"Markets are at the mercy of what is turning into a febrile February, with another raft of announcements keeping volatility high on the agenda," said Interactive Investor head of markets Richard Hunter.

"Tariffs remain central to the uncertainty, with President Trump's latest announcement on Sunday likely to keep investors on edge this week."

Sentiment was boosted by news that activist investor Elliott had taken a 5% stake in UK energy giant BP, with the shares up 7% as a result.

The gold price hit a record high, as investors sought a safe haven for their cash, with the yellow metal hitting $2,892 per ounce.

"Interestingly, Trump announced his latest tariffs late on Sunday, which suggests that he is not too worried about the market reaction. Typically, Trump has announced tariffs earlier in the weekend, as if he was watching the reaction and to give himself time to back track before stocks or risk assets sold off too sharply," said XTB research director Kathleen Brooks.

"This may suggest that Trump is determined to impose tariffs on these industrial metals. These tariffs are targeting specific products, rather than individual countries, which makes it hard for any negotiations to take place."

In equity news, steel makers and related industries were under the cosh in the wake of the tariff announcement with Thyssenkrupp and Salzgitter down. Norwegian shipbuilder and aerospace systems maker Kongsberg was also lower.

Gaztransport and Technigaz slumped after the French industrial company announced the resignation of chief executive, Jean-Baptiste Choimet, and a plan to reorganise its troubled green hydrogen unit Elogen.

Polish miner KGHM Polska Miedz surged after the Polish government revealed plans to reduce a copper output tax.

Reporting by Frank Prenesti for Sharecast.com