European Markets React to US Tariffs

On Tuesday, major European stock markets experienced significant losses as investors responded to the US's imposition of tariffs on goods from Mexico, Canada, and China, and the retaliatory measures these countries have begun to implement.

Auto Sector Takes a Hit

The auto industry was particularly hard hit, with Stellantis and Mercedes-Benz seeing notable declines in their share prices. This comes amid growing concerns over a potential escalation into a broader trade war.

DAX Leads the Decline

Germany's DAX index was at the forefront of the downturn, dropping by 3.32%. Continental AG saw a sharp decrease of 11.64%. Similarly, the EURO STOXX 50 and the French CAC 40 were not spared, closing down by 2.58% and 1.85% respectively, with Stellantis NV plummeting 10.19% within both indexes. The British FTSE 100 also declined, falling 1.20%, with Ashtead Group PLC dropping 8.23%.

Currency Movements

Amidst the market turmoil, the euro strengthened by 0.45% against the dollar, trading at 1.05295 by 5:30 pm CET. The pound also saw a slight increase of 0.15% against the US currency, reaching 1.27169.