Rising global borrowing costs show that investors “are already pricing in” the economic impact of Trump’s policies.

President Trump appears willing to shake up almost every policy area, and a behind-the-scenes E.U. task force has been trying to prepare. But is Europe ready?

JPMorgan Chase & Co. strategists have predicted that US firms' profit levels will likely outdo their European counterparts.

European shares fell to a one-week low on Monday amid a broader market selloff as global equities came under pressure following U.S. jobs data, which strengthened expectations that the Federal Reserve will approach interest rate cuts cautiously this year.

As the greenback moved upward, European currencies found themselves at multi-year lows. The euro fell 0.4% to $1.0199 by 12:50 p.m. London time on Monday, its lowest value against the dollar since Aug. 2022. It was little changed on Tuesday morning.

European shares opened higher on Wednesday due to broad-based gains as bond yields took a breather ahead of a crucial inflation reading in the United States, while British bourses outperformed following a soft local inflation reading.

European markets are heading for a positive open Wednesday as traders await the latest U.S. inflation data that will inform the Federal Reserve's decision-making on interest rate cuts.

Several large U.S. financial institutions, including the Federal Reserve, have withdrawn from the networks after years of growing political and legal pressure.

EUR/USD falls back to near 1.0400 as the US Dollar gains ground amid concerns over global economic growth with Trump’s tariffs. ECB President Lagarde has advised that Europe should be prepared to respond to Trump’s tariff hikes. The Fed and the ECB are set to announce their first monetary policy decision of 2025 next week.

US equity futures dipped after the S&P 500 also closed on the brink of record peak, propelled by optimism over artificial intelligence and a batch of earnings from corporate heavyweights. Contracts on the Nasdaq 100 slipped 0.5% and those on the S&P 500 were down 0.2%.

The dollar fell marginally as uncertainty around President Trump's tariff plans persisted. Trump mentioned potential tariffs on China, Mexico, Canada, and Europe, but without detailed plans. This caused the dollar index to drop and kept markets guessing.

The Big Tech long trade got more vindication Wednesday as Netflix Inc. surged as much as 15% in the premarket on fourth-quarter results that beat estimates. If premarket gains carry through the day, Netflix will hit an all-time high and be set for its biggest rise since October 2023.