European Markets React to US Tariff Announcement

European stock futures experienced a significant downturn on Thursday, following the announcement of US President Donald Trump's comprehensive 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 Implications

Economists from ING have labeled this development as "Europe's worst economic nightmare," projecting a potential reduction of 0.3% in euro zone growth over the next two years.

Market Performance

By 8:02 am CET, notable declines were observed across major European indices: the FTSE 100 dropped by 1.66%, Germany's DAX fell sharply by 431 points (1.92%), France's CAC 40 decreased by 1.09%, and the Euro Stoxx 50 suffered a 2.26% loss.

Currency Market Movements

In the currency markets, the euro appreciated by 0.86% against the dollar, reaching $1.09469, while the pound also saw a 0.67% increase, trading at $1.30939 at 7:57 am CET.