The STOXX index fell 0.2 percent at 0825 GMT, after ending a three-day winning streak yesterday, Tuesday.
Investors continued to be concerned about the potential future targets for tariffs after the announcement Trump Pledges to impose heavy tariffs on his country’s largest trading partners, including Mexico and…China.
Following this, shares of European auto companies fell for a second day and were among the worst performing sectors as there are fears that the tariffs that Trump intends to impose on Mexican imports will harm auto companies in Europe.
Shares of Societe Generale and BNP Paribas fell by about 2 percent. The risk premium required by investors to hold French debt instruments rose to the highest level since 2012, which is an indication of investors’ concern about the fate of the new government and its austerity budget.
The French CAC 40 index fell 1 percent.
Investors are also awaiting US inflation data scheduled to be released later, a day after the minutes of the Federal Reserve’s November meeting showed that officials agreed to avoid providing too many indicators on the path of monetary policy given the uncertainty surrounding the economic landscape.
Grifols shares fell 7 percent after a report said that Canadian investment fund Brookfield was considering canceling a plan to acquire the Spanish pharmaceutical company.
