European markets traded lower on Monday, with the pan-European Stoxx 600 index falling 0.15% by 1:10 p.m. London time. Most sectors in the region were in negative territory, although London’s FTSE 100 bucked the trend to rise 0.11%. Investors are awaiting news on whether US President-elect Donald Trump will follow through on his promise to impose new tariffs on US imports after his inauguration.
Despite a US stock rally after his November electoral victory, globally there are concerns over his pledge to implement universal tariffs on imported goods to the US. This policy is likely to contribute to inflation and put pressure on US consumers, according to economists.
At a pre-inauguration dinner Sunday night, Trump said he plans to sign close to 100 executive orders on the first day of his second presidency. Investors in Europe are also gearing up for the World Economic Forum in Davos, Switzerland, which begins on Monday and steps up a gear on Tuesday. The annual event will feature debates on how to increase economic growth and the challenges posed by artificial intelligence. There are no major earnings or data releases scheduled for release in Europe on Monday, while US financial markets are closed on Monday for Martin Luther King Jr. Day.