LIVE MARKETS-Europe before the bell: Brace for big falls

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EUROPE BEFORE THE BELL: BRACE FOR BIG FALLS

European shares are set for big falls at the open after President Donald Trump vowed to implement an increasing range of tariffs on European states until the U.S. is allowed to buy Greenland.

Euro STOXX 50 futures are down 1.5% with French CAC 40 stocks down 1.8%. FTSE futures are down much less, just 0.5%, as the index's defensive characteristics could offer it some support.

Trump vowed on Saturday to implement a wave of increasing tariffs from February 1 on EU members Denmark, Sweden, France, Germany, the Netherlands and Finland, along with Britain and Norway, until the U.S. is allowed to buy Greenland, a step major EU states decried as blackmail.

EU leaders are set to discuss options at an emergency summit in Brussels on Thursday. One option is a package of tariffs on 93 billion euros ($107.7 billion) of U.S. imports that could automatically kick in on February 6 after a six-month suspension.

Eyes are going to be on already sky-high European defence stocks .SXPARO as well as those most vulnerable to tariffs.

Auto stocks .SXAP, already at close to two month lows, could take a bruising.

The macro and geopolitics news will catch all the attention, it's also worth paying attention to ASM International ASMI.AS after the computer chip equipment maker on Monday reported preliminary bookings above market estimates for the fourth quarter of 2025, backed by a rebound in orders from China.

(Alun John)

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