European stocks closed higher, erasing earlier declines as automakers outperformed on signs US President-elect Donald Trump won’t impose new tariffs on his first day of office.
The Stoxx Europe 600 Index was up less than 0.1 per cent by the close, after dipping as much as 0.2 per cent. The benchmark is about 1 per cent below its September record high. Daimler Truck Holding AG and BMW AG advanced more than 2 per cent.
European markets took centre stage with Wall Street closed for a holiday. Credit: Bloomberg
London’s blue-chip FTSE 100 hit a record high for the second session in a row. The FTSE 100 index of top British firms ended up 0.2 per cent at a fresh closing peak, though off its intraday high.
Traders have been concerned that his threats of tariffs on China and other countries would stoke inflation and weigh on global growth. There was a sense of relief in global markets on Monday after Trump was quoted as saying he would not impose US tariffs yet at his inauguration.
S&P 500 and Nasdaq futures also gained as the greenback eased. US markets were closed for the Martin Luther King Jr Day holiday. The Australian dollar jumped. It was 1.3 per cent higher at 62.73 US cents at 8.30am AEDT.
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The Australian sharemarket is set to edge up, with futures at 5.50am AEDT pointing to a rise of 13 points, or 0.2 per cent, at the open. The ASX added 0.5 per cent on Monday.
Trump is not expected to immediately unveil China-specific tariffs, as the incoming administration has pivoted toward starting his second term with potential engagement with Beijing rather than another trade war, according to people familiar with the plans.
The Wall Street Journal reported earlier Monday that the new administration plans to issue a memorandum asking federal agencies to study existing policies and trade ties with China, Canada and Mexico — but stopping short of calling now for new tariffs on the three biggest US trading partners.
