Wall Street futures in green ahead of first trading session of Trump 2.0, European shares flat

Wall Street futures in green ahead of first trading session of Trump 2.0, European shares flat

U.S. stock futures signalled a positive opening, with Nasdaq futures rising 0.50 percent, S&P 500 futures up 0.44 percent, and Dow futures advancing 0.36 percent.

Global markets were reacting to the start of Donald Trump's presidency. While Trump refrained from imposing tariffs immediately after taking office on Monday, he indicated plans to introduce 25 percent duties on imports from Canada and Mexico starting February 1.

Trump also outlined his intention to address the U.S. trade deficit with the European Union, hinting at either tariffs or increased energy exports as potential measures.

In reaction, the European shares traded on a subdued note as gains in financials and healthcare stocks helped offset broader losses sparked by uncertainty over Trump's proposed tariff measures following his inauguration.

The pan-European STOXX 600 index edged up 0.17 percent to 524.78 by 4:30 PM (IST). The healthcare sector, represented by the SXDP index, led the gains with a 0.7 percent rise, buoyed by a 2.9 percent rally in drugmaker Novo Nordisk.

The financial services SXFP index climbed 0.5 percent, driven by a 4.5 percent surge in shares of British asset manager ABDN after it reported a swing to net inflows in the fourth quarter.

Among other sectors, personal and household goods SXQP was a top performer, adding 0.6 per cent.

The uncertainty surrounding U.S. trade policies and their global implications continues to weigh on investor sentiment, keeping markets cautious, analysts said.

Meanwhile, India's benchmark Sensex tanked 1,235 points to settle at more than seven-month low due to an across-the-board selloff triggered by global trade war worries after US President Donald Trump announced tariffs on neighbouring countries on his inauguration day.

"Domestic markets experienced a significant decline today, with heightened volatility, followed by Trump's announcement of trade tariffs on neighbouring countries on his inauguration day, adding uncertainty into global markets. The weak recovery in the ongoing Q3 earnings, coupled with a depreciating INR, are likely to prompt further outflows from FIIs," Vinod Nair, Head of Research, Geojit Financial Services said.

The 30-share BSE Sensex plummeted 1,235.08 points or 1.60 per cent to settle at 75,838.36 dragged by losses in ICICI Bank and Reliance Industries. During the day, the BSE benchmark plummeted 1,431.57 points or 1.85 per cent to hit an intraday low of 75,641.87.

(Reuters Inputs)

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