Economic Indicators and Tariff Fears Weigh on European Markets

European stock markets experienced a downturn at Monday's close, influenced by recent economic data from the Eurozone, including Italy's inflation figures and Germany's manufacturing statistics. The shadow of potential US tariffs on the European Union, as hinted by President Donald Trump, also contributed to the market's unease. Trump's previous tariff actions against Mexico and Canada, with a temporary reprieve for Mexico, have heightened concerns over international trade tensions.

Market Movements and Currency Fluctuations

Germany's DAX index saw a significant drop of 1.31%, with Volkswagen AG leading the decline at 4.45%. Similarly, the Euro Stoxx 50 and France's CAC 40 indices fell by 1.28% and 1.20%, respectively, with Stellantis NV experiencing a notable decrease on both. The UK's FTSE 100 wasn't spared, dropping 1.04% as Jd Sports Fashion shares fell by 4.67%.

On the currency front, the euro slightly weakened against the dollar, trading at $1.03160 by late afternoon CET. Conversely, the British pound gained 0.15% against the dollar, reaching $1.24303 at the same time, indicating a mixed response to the day's economic and political developments.