European Markets Respond to Tariff Threats

Following the recent threats by United States President Donald Trump to impose a 200% tariff on European Union alcohol exports, major European stock markets experienced a downturn. This move comes as a counter to the EU's 50% tariff on American whisky, signaling a potential escalation in trade tensions between the two economic powerhouses.

Economic Indicators and Market Performance

Investors also had to digest the latest economic reports, including a 0.3% increase in Swiss producer and import prices for February and a 0.8% rise in the euro area's industrial production in January. Despite these positive indicators, the markets showed a mixed reaction.

The DAX index saw a decrease of 0.48%, with Daimler Truck Holdings notably dropping by 4.44%. The FTSE 100 remained stable, while the CAC 40 and Euro Stoxx 50 indexes fell by 0.64% and 0.62% respectively. Pernod Ricard experienced a significant decline of 4.07% on both indexes.

Currency Movements

In currency markets, the euro weakened against the dollar, losing 0.23% to trade at $1.08630 by 5:30 pm CET. Similarly, the British pound saw a slight decrease of 0.13%, trading at $1.29477 at 5:31 pm CET.