A look at the day ahead in European and global markets from

Kevin Buckland

Threats of fresh tariffs under a second Trump administration

continue to unnerve Asian investors, with Japan again - not

China - feeling the biggest effect.

There's already the added weight of a stronger yen

, which does not help exports. The currency has been

among the few to strengthen against the dollar since

mid-November.

The underperformance of automaker shares, in particular,

also point to concerns about Mexican factories reminiscent of

2017.

China investors, meanwhile, seem both relieved that the

threat of additional 10% tariffs on Chinese goods isn't the 60%

levy Trump campaigned on, while also trusting Beijing to ramp up

stimulus to cope with any hit to trade.

Although the yuan, Mexican peso and loonie

are still hovering near multi-month or multi-year

lows, the market consensus 24 hours later is that the tariff

threats are likely a bargaining tactic and may not materialise

come January.

Trump's strategy is focused primarily on deal-making.

The Fed is in the spotlight again, with the central bank's

preferred inflation gauge due for release. Minutes from this

month's meeting on Tuesday suggested a cautious approach to rate

cuts.

Meanwhile, thin trading will get even thinner as Thursday

marks the start of a four-day Thanksgiving weekend for many in

the United States.

European stock futures are flat for the UK FTSE and

pointing lower for Germany's DAX and the pan-regional

STOXX 50. Sterling and the euro have

been oscillating in narrow ranges either side of flat against

the dollar.

Britain's minor trade surplus with the United States

potentially makes it better positioned than Europe, which Trump

has said will "pay a big price" for not buying enough American

cars and farm produce.

On the economic calendar today, Germany and France have

consumer sentiment readings.

ECB board member Philip Lane gives introductory comments at

a conference in Frankfurt, while Riksbank Deputy Governor Per

Jansson gives a talk in Stockholm.

Key developments that could influence markets on Wednesday:

- Germany Gfk consumer sentiment, France consumer confidence

- ECB's Lane, Riksbank's Jansson speak

- US PCE price index (Oct)

(Editing by Jacqueline Wong)