European Markets React Sharply to US Tariff Announcements

As the clock ticked towards the opening of European markets, a wave of panic swept across the continent. Investors were bracing for the impact of reciprocal tariffs announced by United States President Donald Trump, set to take effect on April 9. The uncertainty sent major indexes into a premarket spiral, with Italy's FTSE MIB suffering the heaviest blow.

Indexes Across Europe Take a Hit

Germany's DAX wasn't spared, tumbling 4.83%, while the British FTSE 100 saw a more modest decline. France's CAC 40 and the Euro Stoxx 50 also faced significant drops, highlighting the widespread concern over the upcoming tariffs. Switzerland's SMI and Spain's IBEX 35 rounded out the dismal performance, with losses exceeding 5% and 6%, respectively.

Currency Movements Amid the Chaos

In the currency markets, the euro managed a slight gain against the dollar, trading at $1.09910. The British pound, however, held steady, showcasing the varied reactions across financial instruments to the looming trade tensions.