European Markets Close Deep in the Red Amid Tariff Turmoil

European markets experienced a dramatic downturn on Friday, with the auto sector leading a widespread sell-off. The announcement from Stellantis to cut nearly 5,400 jobs highlighted the severe impact of escalating tariff pressures.

Sharp Declines Across Major Indices

Italy, Spain, and Switzerland saw particularly sharp losses, while Germany’s DAX nosedived by 5%. The DAX plummeted 4.81% at the close, dragged down by Deutsche Bank's 9.77% drop. The Eurostoxx 50 and France’s CAC 40 also suffered significant losses, with Societe Generale falling 10.45%.

Currency Movements Amid Market Chaos

The euro, despite hitting a 5-year high against the Australian dollar earlier in the day, traded 0.65% lower against the US dollar. The pound also lost ground, dropping 1.31% to 1.29355 against the dollar.