European markets slide on auto tariff threat, Middle East tensions; oil prices decline

LONDON — European markets looked set to begin the new week in negative territory as investors continue to monitor developments in the Middle East and a potential renewal of transatlantic trade tensions. Stoxx 50 futures were expected to open 0.32% lower, with France's CAC 40 sliding almost 0.1%, Germany's DAX falling 0.27% and the Italian FTSE MIB down 0.31%. The U.K.'s FTSE 100 is closed for the early spring bank holiday. European automakers were seen between 1.2% and 2.2% lower in pre-market trading after U.S. President Donald Trump said Friday he would increase tariffs on cars and trucks from the European Union to 25%. The European Commission said it was keeping its options in terms of its response. The threat comes despite a Supreme Court ruling in February striking down large parts of Trump's tariff agenda. Meanwhile, President Trump also unveiled a new plan to "free" ships that have been unable to pass through the Strait of Hormuz. The initiative, dubbed 'Project Freedom', could involve 15,000 troops, guided missile destroyers, and 100 aircraft guiding commercial ships through the critical shipping channel. The United Kingdom Maritime Trade Operations reported early Monday that a vessel had been struck by projectiles north of the city of Fujairah in the United Arab Emirates. Oil prices edged lower in early dealmaking, with Brent crude — the global benchmark — down 0.8% to $107.38 a barrel, while West Texas Intermediate slipped 0.84% to $101.10.