European Markets React to China's Tariff Hike

In a swift response to the United States' decision to increase tariffs on Chinese exports to a staggering 125%, with some reports suggesting it even reached 145%, China has retaliated by imposing similar tariffs on US goods. This move has sent shockwaves through European stock markets, leading to significant losses across major indexes.

Market Impact Across Europe

The DAX led the downturn, sliding by 1.37% or 281 points, while the CAC 40 and Euro Stoxx 50 followed suit with declines of 0.91% and 1.03%, respectively. The FTSE 100, Spain's IBEX 35, Italy's FTSE MIB, and the Swiss Market Index (SMI) also experienced notable drops, with Italy's index suffering the most at a 1.75% decrease.

Currency Fluctuations Amid Trade Tensions

The euro and pound sterling saw significant gains against the US dollar, with the euro soaring by 2.14% to $1.14373 and the pound increasing by 1.12% to $1.31156. These currency movements highlight the broader economic implications of the escalating trade tensions between the US and China.