LIVE MARKETS-Europe before the bell: trade war underway

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

EUROPE BEFORE THE BELL: TRADE WAR UNDERWAY

European equity futures are falling on Monday after the Trump administration pushed ahead with well-telegraphed import tariffs on goods from Canada, Mexico and China.

Trump ordered levies of 25% on imports from Mexico and most goods from Canada, as well as 10% on goods from China, demanding they stem the flow of fentanyl. Canada has already retaliated with 25% tariffs on $155 billion of U.S. goods. Mexico said it will implement its own retaliation plan.

Not only has Trump slapped tariffs on America's closest neighbours, he also said tariffs would "definitely happen" with the European Union, but did not say when.

"Although tariffs have not been levied on the EU, this is still a serious blow given what will now probably lay ahead," writes Deutsche Bank strategist Jim Reid.

Euro STOXX 50 futures STXEc1 are down 2.3%. Futures on the FTSE FFIc1, DAX FDXc1 and CAC FCEc1 are down 1.2%-2.1%.

Stocks in Asia-Pacific .MIAPJ0000PUS are down almost 2.4% overnight, while Wall Street futures EScv1 are lower by 1.9%.

Shares in automakers are expected to come under fire as many have manufacturing plants in Mexico and Canada, while the U.S. is a large end market for their products. Volkswagen VOWG.DE, Porsche P911_p.DE, Daimler Truck DTGGe.DE, Mercedes-Benz MBGn.DE and BMW BMWG.DE are down between 1.9%-4.5% on Tradegate.

In other corporate news, Sanofi SASY.PA announced it would be buying back 2.3% of its own shares owned by L'Oreal OREP.PA for 101.5 euros per share, or a total transaction size of 3 billion euros.

(Samuel Indyk)

*****

MONDAY'S OTHER LIVE MARKETS POSTS:

TRUMP TARIFF REALITY UNNERVES MARKETS CLICK HERE