Europe plans to suspend approval of US trade deal

(MENAFN) Financial markets are on edge as the European Parliament prepares to suspend approval of the US trade deal reached in July, according to sources close to the international trade committee. The announcement is expected Wednesday in Strasbourg, France.

The move adds tension to US-Europe relations, coming amid President Donald Trump’s renewed push to acquire Greenland and his weekend threats of new tariffs. Concerns over a potential trade war and retaliatory measures have unsettled investors on both sides of the Atlantic.

European stock markets posted their second consecutive day of losses on Tuesday, while major US indexes dropped sharply: the Dow Jones fell over 1.7%, the S&P 500 dropped more than 2%, and the Nasdaq closed around 2.4% lower. In Asia-Pacific, markets were mixed, with Japan’s and Hong Kong’s indexes dipping slightly, while shares in mainland China edged higher.

Precious metals gained ground amid the uncertainty. Gold climbed past $4,800 (£3,570) per ounce for the first time, while silver eased slightly from Monday’s record above $95 per ounce. Analysts note that investors turn to gold and silver as safe-haven assets during periods of instability.

The US dollar remained mostly stable against major currencies after a 0.5% overnight drop—the largest single-day fall since early December. Trade tensions between the US and Europe had eased following the July agreement at Trump’s Turnberry golf resort in Scotland, but current developments have reignited market concerns.

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