European Markets React to Trade Tensions

Following Beijing's decision to impose higher tariffs on US goods in response to Washington's increased tariffs on Chinese exports, major European stock indexes experienced significant losses. The move comes after the US raised tariffs to a combined 125%, with some reports suggesting figures as high as 145%.

Indexes Across Europe Take a Hit

At 10:36 am CET, the DAX dropped by 1.37%, or 281 points, while the CAC 40 saw a 0.91% decline. The Euro Stoxx 50 and FTSE 100 also fell by 1.03% and 0.50% respectively. Spain's IBEX 35 and Italy's FTSE MIB weren't spared, with drops of 0.49% and a notable 1.75% (600 points) respectively. The Swiss Market Index (SMI) decreased by 0.96%, or 107 points.

Currency Fluctuations Amid Trade Disputes

The euro surged by 2.14% against the dollar, reaching $1.14373, and the pound sterling rose by 1.12% to $1.31156, highlighting the immediate impact of the trade tensions on currency markets.