European Markets Open Lower Amid Trade War Concerns

European stock markets opened sharply lower on Monday, with the Euro Stoxx 50 and CAC 40 both dropping over 2%. This downturn comes as global trade tensions escalate, with US President Donald Trump reaffirming his commitment to impose tariffs on the European Union. This follows recent tariffs imposed on Canada, Mexico, and China, raising fears of a global trade war.

Key Stocks and Indices Hit Hard

At the opening bell, the DAX fell by 1.98%, with Rheinmetall shares dropping 1.03%. The Euro Stoxx 50 and CAC 40 saw significant losses, with Stellantis shares plummeting 5.73%. The FTSE 100 also started the session lower, with Scottish Mortgage Investment Trust experiencing a 4.19% drop.

Currency Movements Reflect Market Anxiety

The euro and pound both weakened against the dollar, with the euro trading 1.43% lower and the pound shedding 0.93%. These movements reflect the growing anxiety among investors about the potential impact of escalating trade tensions on the global economy.