Markets on Tuesday flashed the classic signs of a "sell America" trade, as investors recoiled from escalating risks tied to Washington's foreign policy.

If economic sanctions are designed to apply pressure without firing a shot, then U.S. President Donald Trump has aimed at America's closest military allies.

European stocks are expected to open sharply lower on Monday as traders react to U.S. President Donald Trump's threat to hike tariffs on a number of European countries.