European Markets React to Economic Data and Trade War Fears

Following the release of concerning economic data from Germany, major European stock markets closed Friday's trading session in the red. The data revealed that Germany's industrial output in December reached its lowest point since 2020, sending shockwaves through the markets.

Investors are also closely monitoring the potential impacts of a looming trade war, sparked by United States President Donald Trump's tariffs on China, Mexico, and Canada. The European Central Bank (ECB) has warned that these tariffs could have a detrimental effect on the European economy.

Market Performance Overview

The DAX index fell by 0.63%, with Porsche experiencing a significant drop of 7.12%. Similarly, the Euro Stoxx 50 decreased by 0.62%, with Pernod Ricard shares declining by 4.69%. The CAC 40 index slid 0.43%, and Edenred shares slumped by 4.56%. The FTSE 100 wasn't spared, dropping 0.31%, with Barratt Redrow leading the losses by declining 4.02%.

Currency Movements

On the currency front, the euro weakened by 0.51% against the dollar, trading at $1.03361 at 5:28 pm CET. The pound sterling also decreased by 0.31% against the dollar, selling for $1.24000 shortly after.