BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks may open broadly lower on Wednesday as trade tensions escalate.
After striking a trade deal with Indonesia, U.S. President Donald Trump announced potential tariffs on imported pharmaceuticals by month's end, followed by semiconductor levies.
Trump on Tuesday said Indonesia will buy 50 Boeing jets, energy and farm goods worth billions. In return, Indonesian exports will face a 19 percent tariff and the United States would not pay any tariffs on its goods.
Trump also said that a trade agreement with Vietnam was nearly complete and that the United States is close to getting full trade access to India.
Meanwhile, the Wall Street Journal reported that the European Union is preparing a second list of U.S. products, including aircraft, machinery and wines worth around $77 billion, that would face retaliatory duties if the bloc doesn't reach a deal by Trump's Aug. 1 deadline.
A spokesperson at the European Commission reportedly said the list was drawn up through a 'four-week consultation with Member States, stakeholders and industry.'
U.S. stock futures slipped ahead of earnings results from Bank of America, Goldman Sachs, Morgan Stanley and Johnson & Johnson due later in the day.
June's producer price inflation report is due later in the day after Tuesday's CPI data suggested tariffs were starting to have on impact on prices.
Fed commentary will also be in focus, with Richmond Fed President Thomas Barkin and Fed Governor Michael Barr scheduled to speak.
The European economic calendar remains light, with U.K. inflation data and foreign trade from the euro area likely to garner some attention.
Asian markets were mostly lower due to ongoing uncertainty around U.S. tariffs.
Expectations of tariff-driven price pressures boosted the dollar and U.S. Treasury yields, while gold held firm around $3,340 per ounce levels. Oil ticked higher on expectations of consistent demand from the U.S. and China.
Overnight, U.S. stocks ended mixed after the release of in-line inflation data and mixed earnings from major banks.
Data showed U.S. CPI increased 0.3 percent sequentially in June, putting the annual inflation rate at 2.7 percent and matching consensus estimates.
The so-called core CPI grew 0.2 percent month over month and 2.9 percent year-on-year.
On the earnings front, JPMorgan Chase beat profit estimates but a key profitability metric fell short of expectations.
While Citigroup beat Wall Street estimates for second-quarter profit, Wells Fargo cut its full-year guidance for net interest income.
Investing giant BlackRock said a large client pulled money during the second quarter.
The tech-heavy Nasdaq Composite edged up by 0.2 percent to reach a new record high as Nvidia said it would 'soon' resume H20 AI chip sales to China. The S&P 500 eased 0.4 percent and the Dow lost 1 percent.
European stocks closed lower for a third consecutive session on Tuesday as rising U.S. inflation spurred bond yields. The pan European STOXX 600 dipped 0.4 percent.
The German DAX gave up 0.4 percent, France's CAC 40 declined half a percent and the U.K.'s FTSE 100 shed 0.7 percent.
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