European Markets React to Global Trade Tensions

Major European stock indexes faced significant losses as investors grappled with the implications of reciprocal tariffs announced by United States President Donald Trump and the impending 25% duty on foreign-made vehicles. The financial markets also awaited Germany's latest inflation rate update, adding to the day's economic suspense.

Index Performance Highlights

By midday, the DAX had plunged by 2.04%, leading the downturn. The CAC 40 and Euro Stoxx 50 followed closely, dropping by 1.90% and 1.93%, respectively. Meanwhile, the FTSE 100 saw a 1.33% decline, reflecting widespread investor caution across Europe.

Currency Movements

Amid the market volatility, the euro and pound sterling remained stable against the US dollar, trading at $1.08262 and $1.29414, respectively, by early afternoon.