European Markets React to Escalating Trade War Concerns

As the new week commenced, European stock markets opened with significant losses, driven by heightened fears of a global trade war. US President Donald Trump's firm stance on imposing tariffs on the European Union has sent shockwaves through the markets, following recent tariffs on Canada, Mexico, and China.

Key Market Movements: The DAX index fell by 1.98%, while the Euro Stoxx 50 and CAC 40 experienced sharper declines of 2.27% and 2.02%, respectively. Stellantis emerged as the biggest loser, with its shares plummeting by 5.73%. Across the Channel, the FTSE 100 also opened lower, with Scottish Mortgage Investment Trust leading the downturn.

Currency Fluctuations: The euro and pound both weakened against the dollar, reflecting the market's nervousness ahead of the euro area inflation data release.