Market Reaction to US Tariffs

European stock markets experienced significant declines in premarket trading following the implementation of new US tariffs on imports from several countries, including a staggering 104% duty on Chinese goods. The tariffs, effective immediately, have sparked concerns over escalating trade tensions.

Impact on Major Indices

By 8:00 am CET, the DAX had plummeted by 3.74%, leading the downturn, with the FTSE 100 and CAC 40 not far behind, dropping by 3.18% and 1.87%, respectively. The broader Euro Stoxx 50 also suffered, sliding 3.84%.

Currency Movements

Amid the market turmoil, the euro and pound showed resilience against the dollar, gaining 0.91% and 0.56%, respectively, by 7:58 am CET.