European Markets React to China's Tariff Retaliation

Following Beijing's decision to impose tariffs on US goods, mirroring Washington's recent hike to 125%, major European stock indexes experienced significant losses. This move has intensified global trade tensions, with tariffs reportedly reaching as high as 145% in some cases.

Stock Indexes Across Europe Take a Hit

The DAX fell by 1.37%, or 281 points, while the CAC 40 and Euro Stoxx 50 dropped by 0.91% and 1.03%, respectively. The FTSE 100 and Spain's IBEX 35 also saw declines, with Italy's FTSE MIB and the Swiss Market Index (SMI) not spared from the downturn.

Currency Fluctuations Amid Trade Tensions

The euro surged by 2.14% against the dollar, reaching $1.14373, and the pound sterling gained 1.12%, trading at $1.31156. These currency movements highlight the broader economic implications of the escalating trade dispute.