Europe midday: Shares slip into red as Trump threatens tariffs over Iran

(Sharecast News) - European stocks pulled back from fresh highs on Tuesday and slipped into the red as US President Donald Trump's to slap Iran's trading partners with 25% tariffs hit sentiment.

The pan-regional Stoxx 600 hit 611.78, a new intra-day high, but was down 0.24% to 609.50 at 1206 GMT. All major bourses had followed suit.

Trump said any country that traded with Tehran would face the tariff rate on exports to the US, as Washington mulled its response to the Islamic regime's crackdown on anti-government protests that has left hundreds dead, according to human rights groups.

"Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America," Trump said in his usual overnight round of social media pronouncements.

"This order is final and conclusive," he added. Iran's major trading partners include China - a large buyer of its oil - the United Arab Emirates and India.

Oil prices jumped, with Brent crude up 0.47% to $64.17 a barrel as investors fretted about the potential threat to supply from the world's fifth largest producer.

Mreanwhile, a raft of central bank chiefs issued a joint statement on Tuesday in support of Federal Reserve chair Jerome Powell, after the Trump administration threatened him with a criminal indictment.

The heads of the Bank of England, the European Central Bank, the Bank of Canada, Sweden's Riksbank and seven other central banks said: "We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell. The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve.

"It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability. Chair Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest. To us, he is a respected colleague who is held in the highest regard by all who have worked with him."

The long-running row between Trump and Powell on Sunday escalated when the Department of Justice opened a criminal investigation into the central banker over renovations to the Fed's HQ.

In equity news, shares in Orsted rose nearly 6% after a US judge cleared the Danish renewables company to resume work on its $5bn Revolution Wind project near the Rhode Island coast in a legal setback for Trump who had moved to block it.

Whitbread gained as the Premier Inn owner said it expected a lower-than-anticipated hit from business rate hikes announced in the UK's autumn budget.

German fragrances maker Symrise surged as it launched a �400m share buyback and on Monday said it was in advanced talks to sell its terpenes business and that it would take a non-cash impairment of about �145m related to the sale.

Reporting by Frank Prenesti for Sharecast.com