Market Reaction to Trade Tensions

Following Beijing's decision to impose tariffs on US goods, mirroring Washington's recent increases, major European stock markets experienced significant downturns. This move marks a sharp escalation in the ongoing trade dispute between the world's two largest economies.

Impact on European Indices

The DAX fell by 1.37%, losing 281 points, while the CAC 40 and Euro Stoxx 50 also saw declines of 0.91% and 1.03% respectively. The FTSE 100 and Spain's IBEX 35 dropped by 0.50% and 0.49%, with Italy's FTSE MIB and the Swiss Market Index (SMI) suffering even steeper losses of 1.75% and 0.96%.

Currency Fluctuations

Amidst these developments, the euro surged by 2.14% against the dollar, reaching $1.14373, and the pound sterling appreciated by 1.12% to $1.31156, reflecting the market's reaction to the escalating trade tensions.