European Markets React to Economic Data and Trade War Concerns

On Friday, major European stock markets closed lower following the release of pivotal economic data from Germany. The data revealed that the country's industrial output in December reached its lowest point since 2020, signaling potential challenges ahead for Europe's largest economy.

Trade War Tensions Loom Large

Investors are also closely monitoring the escalating trade tensions initiated 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 impact on the European economy, adding to the market's unease.

Market Performance Highlights

The DAX index fell by 0.63%, with Porsche experiencing a significant drop of 7.12%. The Euro Stoxx 50 was not spared, declining by 0.62%, as Pernod Ricard shares decreased by 4.69%. The CAC 40 index also saw a decline of 0.43%, with Edenred shares plummeting by 4.56%. Across the Channel, the FTSE 100 dropped by 0.31%, led by a 4.02% fall in Barratt Redrow shares.

Currency Movements

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