European Markets React to Trade Tensions

In a swift response to the United States' decision to increase tariffs on Chinese exports to a staggering 125%, China has retaliated by imposing similar tariffs on US goods. This escalation in trade tensions has sent shockwaves through European stock markets, leading to significant losses across major indexes.

Market Downturn Across Europe

By mid-morning CET, the DAX had slid by 1.37%, equivalent to 281 points, while the CAC 40 declined by 0.91%. The Euro Stoxx 50 and FTSE 100 also felt the pressure, dipping by 1.03% and 0.50% respectively. Not to be left out, Spain's IBEX 35 dropped by 0.49%, and Italy's FTSE MIB saw a sharp decline of 1.75%. The Swiss Market Index (SMI) wasn't spared either, falling by 0.96%.

Currency Shifts Amidst Trade War

The trade war's ripple effects were also felt in the currency markets, with the euro soaring by 2.14% against the dollar, reaching $1.14373. Similarly, the pound sterling appreciated by 1.12% against the US currency, trading at $1.31156.