European Stocks React to New US Tariffs

European stock markets experienced significant declines in premarket trading this Wednesday, following the implementation of new US tariffs on imports from several countries, including a staggering 104% duty on Chinese goods. Investors' sentiment took a hit as these measures came into effect shortly after midnight.

Market Indexes Show Widespread Losses

By 8:00 am CET, major European indexes were deep in the red. The DAX led the downturn with a 3.74% drop, closely followed by the FTSE 100's 3.18% decline. The CAC 40 and Euro Stoxx 50 weren't spared, losing 1.87% and 3.84% respectively. Switzerland's SMI and Italy's FTSE MIB also faced steep declines of 3.49% and 3.85%, while Spain's IBEX 35 decreased by 1.73%.

Currency Movements Amidst Market Turmoil

In the currency markets, the euro and pound showed resilience against the dollar. The euro appreciated by 0.91% to $1.10584, and the pound gained 0.56%, trading at $1.28371 by 7:58 am CET.