European Markets React to China's Tariff Hike

Following Beijing's decision to impose increased tariffs on US goods, major European stock markets experienced significant losses. This move was in direct response to Washington's earlier hike in tariffs on Chinese exports, escalating trade tensions between the two economic giants.

Market Indexes Show Downturn

At 10:36 am CET, the DAX dropped by 1.37%, or 281 points, signaling a sharp decline. Similarly, the CAC 40 and Euro Stoxx 50 fell by 0.91% and 1.03% respectively, with Italy's FTSE MIB witnessing the steepest drop of 1.75%. The FTSE 100 and Spain's IBEX 35 also saw decreases, highlighting the widespread impact of the trade dispute on European markets.

Currency Fluctuations Amid Trade Tensions

The euro and pound sterling both gained strength against the US dollar, with the euro soaring by 2.14% to $1.14373. This currency shift underscores the broader economic repercussions of the ongoing tariff war between the US and China.