Market Chaos as Tariffs Take Their Toll

European markets faced a brutal close on Friday, with sectors across the board suffering significant losses due to escalating tariff tensions. The auto industry was hit hardest, signaling a dire outlook for the region's economic stability.

Auto Giants and National Markets Bear the Brunt

Stellantis announced a drastic cut of nearly 5,400 jobs, a direct response to the mounting pressure from tariffs. Italy, Spain, and Switzerland experienced some of the sharpest declines, while Germany's DAX saw a staggering 5% drop during the session, with Deutsche Bank leading the downturn.

Across the Board: A Day of Record Lows

The DAX closed down 4.81%, with Deutsche Bank plummeting 9.77%. The Eurostoxx 50 wasn't spared, dropping 4.60%, and France's CAC 40 fell 4.01%, with Societe Generale suffering the most at a 10.45% loss. The FTSE 100 wasn't immune, closing at its lowest since March 2020 after a 4.95% drop, with Rolls-Royce diving 11.66%.

Currency Fluctuations Add to the Gloom

Despite hitting a 5-year high against the Australian dollar earlier in the day, the euro traded 0.65% lower against the US dollar by late afternoon. The pound also faced a steep decline, losing 1.31% of its value.