European shares are trading lower Friday afternoon as global trade tensions rise ahead of this weekend’s G7 meeting in Canada. Investors have also turned cautious amid signs that the European economic recovery isn’t as entrenched as previously thought.
By 1305 BST, the EUROSTOXX 600 was 0.03% lower, while the EUROSTOXX 50 lost 0.27%. Regional bourses, however, were a little mixed. The German DAX fell 0.27%, the French CAC was up 0.07% and the Spanish IBEX was 0.82% in the red.
Revived global trade tensions
The world’s seven most developed economies are set to meet in Canada over the weekend and rhetoric between leaders over trade disagreements is heating up.
Reports sate that US allies are set to work together in retaliation of the new trade tariffs that are being imposed on them. However, US President Trump went on the offensive, over Twitter.
“I am heading for Canada and the G-7 for talks that will mostly center on the long time unfair trade practiced against the United States,” one tweet stated.
Other Trump Tweets included:
“Please tell Prime Minister Trudeau and President Macron that they are charging the US massive tariffs and create non-monetary barriers. The EU trade surplus with the US is $151 Billion, and Canada keeps our farmers and others out. Look forward to seeing them tomorrow.”
“Why isn’t the European Union and Canada informing the public that for years they have used massive Trade Tariffs and non-monetary Trade Barriers against the US Totally unfair to our farmers, workers & companies. Take down your tariffs & barriers or we will more than match you!”
While the comments and reports work to dampen positive investor sentiment Friday, there was at least one spot of brighter news.
Luxury Brand owner Kering shares moved higher as analysts were largely positive on the French businesses’ Gucci sales target of £10 billion per year.