European Markets React to Economic Indicators and Trade War Concerns

On Friday, European stock markets closed lower, reacting to disappointing economic data from Germany and growing concerns over a potential trade war. Germany's industrial output in December fell to its lowest since 2020, sparking worries about the continent's economic health.

Investors Eye Trade War Implications

Investors are closely monitoring the situation as United States President Donald Trump's tariffs on China, Mexico, and Canada could have adverse effects on Europe's economy. The European Central Bank (ECB) has warned that these tariffs could hurt the European economy significantly.

Market Performance Overview

The DAX index dropped by 0.63%, with Porsche leading the losses by plummeting 7.12%. The Euro Stoxx 50 fell 0.62%, and Pernod Ricard decreased by 4.69%. France's CAC 40 slid 0.43%, with Edenred slumping 4.56%. Meanwhile, the FTSE 100 dropped 0.31%, with Barratt Redrow declining 4.02%.

Currency Movements

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.