Europe open: Markets flat as trade war uncertainty hits risk appetite

(Sharecast News) - European stock markets were trading within a narrow range on Tuesday with investors scaling back their appetite for risk as new US tariffs on steel and aluminium imports came into force on Monday evening. By 0910 CEST, the Stoxx 600 was flat at 545.96, with small gains in London and Paris offset by mild losses in Frankfurt and Milan.

President Donald Trump announced at the weekend that the US government was imposing 25% tariffs on steel and aluminium imports into the country from Monday. The latest protectionist measures come ahead of a string reciprocal tariffs that Trump has promised to unveil in the coming days, targeting countries that already charge additional duties on American-made goods.

In an email ahead of the opening bell in Europe, Kathleen Brooks, research director at XTB, said: "As 25% levies on imports of steel and aluminium came into force late Monday night, which included steel and aluminium finished products, futures markets started to decline, and [markets] are expected to open lower today as a tone of caution impacts financial markets."

Gold prices were closing in on the $3,000-an-ounce mark on the back of safe-haven demand amid ongoing concerns of an escalating trade war. Gold was up 0.2% at a record $2,939.80 an ounce.

No major economic data was scheduled for Tuesday.

Market movers

Shares in sports betting and gaming group Entain dropped 10% after the revelation that chief executive Gavin Isaacs has left the UK company with immediate effect after just five months. Entain did not disclose a reason for the abrupt departure, but said that the decision was "by mutual agreement".

Also under pressure in London was housebuilder Bellway after reporting that it didn't experience a typical seasonal step-up in demand in the autumn due to rising mortgage rates. While the company reiterated full-year guidance, shares were down more than 6% early on.

Leading the risers was French luxury goods giant Kering as fourth-quarter revenues beat market forecasts, though sales at the struggling Gucci brand dropped 24%.

German travel and tourism group TUI fell 7% after underwhelming with a 13% increase in first-quarter revenues and a rise in underlying earnings.

Nordics-focused insurer Sampo was registering 80% lower in Helsinki after a four-for-one stock split came into effect.