European shares were largely unchanged on Tuesday after a record close in the previous session, with investors assessing the risks of an escalating trade war after US President Donald Trump raised tariffs on metals.
The pan-European STOXX 600 index was down 0.05% as of 0810 GMT.
Trump raised the US tariff rate on aluminum to 25% from his previous 10% rate. Basic resources fell 1%. European steelmakers, which account for about 15% of imports into the United States, fell.
Shares of Thyssenkrupp and Salzgitter were down over 1% each.
Travel and leisure fell 1.3%, dragged by a 10% drop in Entain after the British bookmaker said CEO Gavin Isaacs will step down immediately.
European shares near record high following robust earnings; BoE rate decision awaited
Among other stocks, Kering jumped 4.6% after the French luxury group reported fourth quarter revenue above expectations.
Federal Reserve Chair Jerome Powell’s semiannual monetary policy testimony will begin at 1500 GMT, with investors anticipating his comments on Trump’s trade policies and their implications on the US interest rate outlook.
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