European Markets React to China's Tariff Announcement

Following China's decision to increase tariffs on United States goods up to 125%, major European stock indexes closed mostly lower, marking a volatile end to the trading week. This move further escalates trade tensions between the world's two largest economies.

UK's Fiscal Stability Amidst Global Trade Tensions

In contrast to the market turmoil, British Chancellor Rachel Reeves reassured the public by confirming no increases to income tax, VAT, or National Insurance, providing a semblance of stability in the UK.

Market Performances at a Glance

The DAX saw a significant drop of 1.08%, with MTU Aero Engines leading the decline at 5.81%. The CAC 40 and Euro Stoxx 50 also fell by 0.27% and 0.67% respectively, with Safran experiencing the largest drop. However, the FTSE 100 bucked the trend, gaining 0.64% thanks to Fresnillo's impressive 7.37% jump.

Currency Movements

The euro and pound sterling both gained against the dollar, with the euro rising 1.16% to 1.13293 and the pound increasing 0.62% to 1.30483, reflecting the day's mixed financial signals.