European Markets React to Tariff Talks and ECB Warnings

As the trading session concluded on Thursday, major European stock indexes mostly recorded losses, with investors closely monitoring the ongoing discussions on tariffs. European Central Bank (ECB) President Christine Lagarde highlighted the potential impact of U.S. tariffs, suggesting a 0.3 percentage point reduction in the European Union's economic growth within the first year.

Monetary Policy Adjustments Across Europe

In the realm of monetary policy, the Swiss National Bank (SNB) decided to reduce its interest rates by a quarter of a percentage point. In contrast, the Bank of England (BoE) opted to maintain its current rates, leaving them unchanged.

Stock Performance Highlights

The DAX index experienced a 1.24% decline, with Volkswagen shares dropping by 4.15%. Similarly, the Euro Stoxx 50 saw a 1.02% decrease, led by a significant 6.11% fall in Prosus shares. The CAC 40 index fell by 0.95%, with STMicroelectronics shares decreasing by 3.85%. Meanwhile, the FTSE 100 remained stable, showing no significant change.

Currency Movements

By 5:34 pm CET, the euro had decreased by 0.51% against the dollar, trading at 1.08477. Concurrently, the pound experienced a 0.30% loss, selling at 1.29648.