European Markets React to US Tariffs

European stock markets opened lower on Wednesday, responding to 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 a potential trade war escalation.

Market Performance Highlights

By 8:00 am CET, the DAX had plummeted by 3.74%, marking a significant downturn. Similarly, the FTSE 100 decreased by 3.18%, while the CAC 40 and Euro Stoxx 50 saw losses of 1.87% and 3.84%, respectively. Switzerland's SMI and Italy's FTSE MIB weren't spared, dropping by 3.49% and 3.85%, with Spain's IBEX 35 also in the red, down by 1.73%.

Currency Movements

Amid the market turmoil, the euro strengthened by 0.91% against the dollar, trading at $1.10584. The pound also gained, rising by 0.56% to $1.28371, as investors sought safer assets.