European Markets React to Trump's Tariff Announcement

Major European stock indexes experienced a downturn in premarket trading following the announcement by United States President Donald Trump regarding the imposition of auto tariffs on all cars manufactured outside the US, effective April 2. This move has raised concerns over potential trade wars, especially after Trump hinted at additional duties on Canada and the European Union should they collaborate in ways deemed harmful to US economic interests.

Impact on Key European Indexes

By 8:00 am CET, the DAX had fallen by 1.02%, and the FTSE 100 saw a decrease of 0.40%. Similarly, the CAC 40 and the Euro Stoxx 50 were not spared, declining by 0.36% and 0.63% respectively.

Currency Movements Amidst Trade Tensions

In the currency markets, the euro appreciated by 0.17% against the dollar, trading at $1.07725 by 7:58 am CET. The British pound also gained strength, increasing by 0.25% to $1.29204.