European Stock Futures React Sharply to New US Tariffs

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

Economic Impact and Market Reactions

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

Currency Market Responses

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