European Markets React to Upcoming US Trade Tariffs

European markets experienced a sharp decline on Monday, with investors showing concern over the sweeping US trade tariffs scheduled to take effect this Wednesday. The downturn was widespread, affecting all sectors, but notably hitting autos and mining shares the hardest.

Notable Declines: Shares of Volkswagen, Mercedes-Benz, and Renault each dropped by 2.5%, while the Stoxx Basic Resources index reached its lowest point since 2020.

Market Indexes and Currency Impacts

By the close of trading, the DAX had lost 1.25%, equivalent to 281 points, with Ing hc F Porsche AG seeing a significant drop of 3.78%. The CAC 40 wasn't spared, falling by 1.55%, and Capgemini decreased by 5.02%. Meanwhile, the FTSE 100 declined by 0.82%, with IAG leading the downturn at a 6.63% drop. The pan-European Euro Stoxx 50 wasn't immune, dropping 1.49%, and Flutter Entertainment traded 4.86% lower.

In the currency markets, the euro and the British pound both weakened against the dollar, down by 0.17% and 0.18% respectively at 5:28 pm CET, trading at $1.08128 and $1.29185.