FILE PHOTO – The German share price index, DAX board, is seen at the stock exchange in Frankfurt, Germany, March 21, 2018. REUTERS/Tilman Blasshofer
July 2, 2019
(Reuters) – European shares edged higher in early trading on Tuesday, following a rally from the previous session, but Washington’s tariff threats on $4 billion of additional EU goods kept gains in check.
Days after reaching a truce in the U.S.-China trade war, the U.S. government on Monday ratcheted up pressure on Europe in a long-running dispute over aircraft subsidies.
Planemaker Airbus <AIR.PA> dropped 1% and pressured France’s CAC 40 index <.FCHI>, which underperformed the pan-European STOXX 600 index’s <.STOXX> 0.2% gain by 0715 GMT.
The U.S. Trade Representative’s office released a list of additional products – including olives, Italian cheese and Scotch whiskey – that could be hit with tariffs, on top of products worth $21 billion that were announced in April.
Financials <.SXFP> rose 0.4% and was the biggest boost to markets, as shares of HSBC Holdings <HSBA.L> rose 0.4% and Prudential Plc <PRU.L> climbed 1%.
(Reporting by Amy Caren Daniel in Bengaluru; Editing by Bernard Orr)
