European stock markets closed Tuesday at record highs as investors assessed the European Union’s reaction to U.S. President Donald Trump’s decision to raise duties on all steel and aluminum imports starting in March. The pan-European STOXX 600 added 0.2 percent.
Trump’s move sent shares of European steel companies, which account for about 15% of U.S. steel imports, tumbling. In addition, Washington is set to impose retaliatory duties this week on countries that apply tariff restrictions on U.S. products.
Head of the European Commission Ursula von der Leyen sharply criticized the US administration’s move and said that the EU will respond with “decisive and proportionate measures”.
Meanwhile, Fed Chairman Jerome Powell, speaking before the Senate Banking Committee, said he was in no hurry to make another rate cut – the economy remains “generally strong,” unemployment is low, and inflation is above the Fed’s 2% target.
Today he is expected to appear before the House Financial Services Committee, as well as the publication of data on inflation in the U.S. in January.
