(Alliance News) - European equities are called to open higher on Wednesday, despite another decline over on Wall Street, while tariff worries kept a lid on enthusiasm over in Asia.
IG says futures indicate the FTSE 100 to open 38.2 points higher, 0.4%, at 8,534.19 on Wednesday. The index of London large-caps closed down 104.23 points, 1.2%, at 8,495.99 on Tuesday.
The CAC 40 in Paris is called up 1.1%, and Frankfurt's DAX 40 up 1.0%.
In China, the Shanghai Composite was down 0.1% in late trad, while the Hang Seng Index in Hong Kong was down 0.7%. Tokyo's Nikkei 225 was up 0.1%, though Sydney's S&P/ASX 200 slumped 1.3%. The Sydney benchmark is now down around 9% from a year-to-date closing high achieved on February 14.
Australian Prime Minister Anthony Albanese said US tariffs on the country's steel and aluminium were unjustified, but his government would not retaliate with its own tariffs.
"It has been foreshadowed that no country regardless of its relationship with the US has been granted an exemption. Such a decision by the Trump administration is entirely unjustified," he said.
"Tariffs and escalating trade tensions are a form of economic self-harm and a recipe for slower growth and higher inflation. They are paid by the consumers. This is why Australia will not be imposing reciprocal tariffs on the US."
US President Donald Trump said last month he was considering a tariff exemption for Australia, a free trade treaty partner that has traded with the US at a deficit for decades.
US Secretary of State Marco Rubio headed Wednesday to Canada on the highest-level visit by the administration of President Trump, who has unleashed a trade war described by the US' neighbour as an existential challenge.
Rubio arrives the same day that Canada, along with other US trading partners, is being hit by a blanket 25% levy on all steel and aluminium imports.
Trump on Tuesday threatened to double the tariff rate on Canada but backed down after Ontario, the most populous province, agreed to stand down on a surcharge on electricity to three US states.
In New York, the Dow Jones Industrial Average closed down 1.1% on Tuesday. The S&P 500 lost 0.8% and the Nasdaq Composite fell 0.2%.
The EU has announced it will respond to US tariffs on steel and aluminium imports by reintroducing tariffs on US products including whiskey, motorcycles, peanut butter and boats starting in April.
The European Commission said in a memo that the countermeasures aim to "protect European businesses, workers and consumers" from the impact of US tariffs of up to 25% on imports of steel, aluminium and some products containing the metals.
According to the Commission, the new US tariffs will affect EU exports worth EUR26 billion, roughly 5% of the EU's total goods exports to the US, resulting "in US importers having to pay up to EUR6 billion in additional import tariffs."
The pound fell to USD1.2928 early on Wednesday, from USD1.2943 at the time of the London equities close on Tuesday. The euro fell to USD1.0901 from USD1.0924. Against the yen, the dollar perked up to JPY148.14 from JPY147.45.
A barrel of Brent faded to USD69.67 on Wednesday, from USD69.91 late Tuesday afternoon. Gold ebbed to USD2,914.91 an ounce, from USD2,916.72.
Wednesday's UK corporate calendar sees full-year results from insurer Legal & General and outsourcer Balfour Beatty.
Wednesday's economic calendar sees US consumer price index data at 1230 GMT.
According to consensus cited by FXStreet, the pace of US consumer price inflation is expected to have eased to 2.9% in February, from 3.0% in January.
By Eric Cunha, Alliance News news editor
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