European stocks look set to extend losses from the previous session on Friday, tracking a weak U.S. dollar after the European Commission promised "countermeasures' against U.S. President Trump's announcement of new tariffs on imported steel and aluminum.
U.S. stocks tumbled overnight as Trump unveiled his controversial tariff plan and a slew of encouraging data on jobless claims, personal income and spending as well as manufacturing stoked speculation the Fed may be more aggressive in hiking interest rates.
Meanwhile, during his second day of congressional testimony, Fed Chair Jerome Powell said that there hasn't yet been strong evidence of a decisive increase in wages.
The Dow Jones Industrial Average dropped 1.7 percent, while the tech-heavy Nasdaq and the S&P 500 fell around 1.3 percent.
Asian stocks remain broadly lower, with benchmark indexes in Japan, Hong Kong and South Korea falling 1-2 percent on fears of an imminent trade war.
Investors also kept an eye on the upcoming session of the National People's Congress starting next week in Beijing. The gathering of 3,000-plus delegates is expected to set the tone for the year's development plans.
Oil prices traded mixed while the U.S. dollar weakened broadly after the main trading partners of the U.S. threatened retaliatory actions on U.S. goods.
In economic releases, retail sales figures from Germany, purchasing managers' survey results from the U.K. and a U.S. report on consumer sentiment are due later in the day.
European stocks extended losses for a third day on Thursday as investors digested lackluster earnings reports and fretted about how fast the Fed might raise rates.
The pan-European Stoxx Europe 600 index tumbled 1.3 percent. The German DAX plunged 2 percent, France's CAC 40 index dropped 1.1 percent and the U.K.'s FTSE 100 shed 0.8 percent.
by RTT Staff Writer
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