LIVE MARKETS-Europe before the bell: tariff fears batter futures

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EUROPE BEFORE THE BELL: TARIFF FEARS BATTER FUTURES

European futures are taking a hit this morning as traders react to U.S. President Donald Trump announcing that 25% tariffs on Mexican and Canadian goods will take effect on Tuesday, along with an extra 10% duty on Chinese imports.

Euro STOXX 50 futures STXEc1 are down 1.2%, while German DAX futures FDXc1 are down 1.1% and FTSE futures FFIc1 are off 0.8%.

Investor tariff fears have also sent some risk-sensitive currencies such as the Aussie dollar tumbling, weighed on bitcoin and gave safe-haven support to the dollar.

A generally positive raft of Q4 European earnings hasn't been enough to lift sentiment.

Among them are Clariant, which has topped core profit expectations and Germany's Allianz ALVG.DE, which posted a better-than-expected 15% rise in net profit.

Elsewhere, Dutch geological data specialist Fugro FUGR.AS is out with higher than expected fourth-quarter core earnings and BASF BASFn.DE has predicted growth in adjusted operating income of as much as 6.3% this year.

Building materials company Holcim HOLN.S also reported better-than-expected earnings.

In other news, a Reuters poll of 21 economists forecast that China's factory activity likely contracted for a second month in February, keeping alive calls for even more stimulus to prop up depressed domestic demand in the world's second-largest economy as manufacturers brace for fresh U.S. tariffs.

(Lucy Raitano)

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