LIVE MARKETS-Europe before the bell: watch auto stocks

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EUROPE BEFORE THE BELL: WATCH AUTO STOCKS

The open is all about auto stocks after U.S. President Donald Trump unveiled a 25% tariff on imported vehicles, expanding a global trade war and prompting criticism and threats of retaliation from affected U.S. allies.

Asian auto stocks are already sharply lower, and European share futures suggest the auto-heavy Dax will underperform at the open.

Dax futures FDXc1 are down 1.2% compared to a 0.5% fall for less auto-exposed FTSE futures FFIc1. Euro stoxx 50 futures are down 0.9%. STXEc1

European auto stocks .SXAP dropped to a seven-week low late on Wednesday.

Away from autos, there are a few earnings to keep an eye on. Swedish fast-fashion retailer H&M HMb.ST reported weaker than expected sales for its first quarter and said sales were up 1% so far in March, in a sign of a slow start to its spring and summer season.

Meanwhile, British clothing retailer Next NXT.L reported a 10.1% rise in annual profit, making in excess of a billion pounds for the first time, and raised its guidance for sales and profit growth in its new financial year.

Italy has handed tax demands to Meta META.O, X and LinkedIn in an unprecedented VAT claim against the U.S. tech giants that could have repercussions across the European Union, four sources with direct knowledge of the matter said on Wednesday.

(Alun John)

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