European Markets React to German Industrial Output Decline

On Friday, major European stock markets closed lower following the release of critical economic data from Germany. The data revealed a significant drop in industrial output for December, marking the lowest levels since 2020. This downturn has raised concerns about the resilience of the European economy in the face of global trade tensions.

Trade War Concerns Loom Over European Economy

Investors are closely monitoring the potential impacts of a looming trade war, fueled 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, further exacerbating the current market volatility.

Market Performance Highlights

The DAX index fell by 0.63%, with Porsche experiencing a sharp decline of 7.12%. Similarly, the Euro Stoxx 50 decreased by 0.62%, led by a 4.69% drop in Pernod Ricard shares. The CAC 40 index slid 0.43%, and the FTSE 100 dropped 0.31%, with Barratt Redrow leading the losses by declining 4.02%.

In currency markets, the euro weakened by 0.51% against the dollar, trading at $1.03361 by 5:28 pm CET. The pound sterling also decreased by 0.31% against the dollar, selling for $1.24000 a minute later.