European Markets React to Trump's Tariff Announcement

Following the announcement of new tariffs by United States President Donald Trump, including a 20% levy on goods from the European Union, major European stock indexes opened lower on Thursday. Investors are closely monitoring the situation, alongside awaiting PMI reports from the UK, Germany, and the Eurozone, as well as the euro area's producer prices report.

Significant Drops Across Major Indexes

The DAX experienced a sharp decline of 2.13%, or 502 points, at the opening, with Bayer's shares falling by 3.99%. Similarly, the FTSE 100 dropped by 1.17%, impacted by JD Sports Fashion's 5.22% loss. The CAC 40 wasn't spared, decreasing by 2.2%, as Airbus shares plunged by 4.73%. The Euro Stoxx 50 also saw a significant decline of 2.31%, with Adidas shares plummeting by 10.16%.

Currency Movements Amidst Market Turbulence

Amidst the market's reaction to the tariffs, the euro gained 1.24% against the dollar, trading at $1.09886. The pound also saw an increase, up 0.85% against the dollar, trading at $1.31181.