European Markets React to Escalating US-China Trade War

Equities across Europe opened lower on Wednesday, as the trade dispute between the United States and China intensifies. The US has imposed a combined tariff rate of 104% on Chinese products, a move that has sent shockwaves through global markets. China, on its part, has vowed to resist these measures "to the end," signaling no retreat from the escalating trade war.

Major European Indices Suffer Significant Losses

The impact was immediately felt across European markets:

FTSE 100 plunged by 2.09%, while DAX saw a sharper decline of 3.08%.

Euro Stoxx 50 dipped 3.43%, and CAC 40 decreased by 3.21%.

Other notable losses included Spain's IBEX 35, which lost 2.14%, and Swiss SMI, plummeting 2.89%. Italy's FTSE MIB also traded 2.86% lower.

This developing story highlights the growing tensions between the world's two largest economies and their far-reaching effects on global markets.