European Stock Futures Dive Amid US Tariff Announcement

European stock futures experienced a sharp decline on Thursday, following the announcement of US President Donald Trump's sweeping tariff policy. The new measures include a 10% baseline tariff on all US imports and a 20% rate specifically for goods from the European Union.

Economic Impact and Market Reactions

Economists from ING have labeled the policy as "Europe's worst economic nightmare," predicting it could reduce euro zone growth by 0.3% 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 Markets Respond

In contrast to the stock market turmoil, 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.