European Stock Futures Take a Hit

European stock futures experienced a sharp decline on Thursday, following the announcement of US President Donald Trump's sweeping tariff policy. This policy introduces a 10% baseline tariff on all US imports, with a heightened 20% rate specifically targeting goods from the European Union.

Economic Warnings and Market Reactions

Economists from ING have labeled this development as "Europe's worst economic nightmare," predicting a potential reduction of 0.3% in euro zone growth over the next two years. By 8:02 am CET, significant drops were observed across major indices: the FTSE 100 fell by 1.66%, Germany's DAX plummeted 431 points (1.92%), France's CAC 40 decreased by 1.09%, and the Euro Stoxx 50 lost 2.26%.

Currency Market Movements

In contrast to the stock market's downturn, the currency markets saw the euro appreciate by 0.86% against the dollar, reaching $1.09469, while the pound also gained 0.67% to $1.30939 by 7:57 am CET.