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 has further escalated trade tensions between the world's two largest economies, casting a shadow over global market stability.

UK Chancellor Reassures on Tax Policies

Amidst the market turmoil, British Chancellor Rachel Reeves provided some relief by confirming there would be no increases in income tax, VAT, or National Insurance, offering a silver lining to UK investors.

Market Performances at a Glance

The DAX saw a significant drop of 1.08%, with MTU Aero Engines leading the fall at 5.81%. The CAC 40 and Euro Stoxx 50 also felt the pressure, declining by 0.27% and 0.67% respectively, with Safran experiencing a notable 3.44% decrease. Conversely, the FTSE 100 bucked the trend, gaining 0.64%, buoyed by Fresnillo's impressive 7.37% leap.

Currency Movements

In currency markets, the euro strengthened by 1.16% against the dollar, trading at 1.13293 by late afternoon CET. Similarly, the pound sterling appreciated by 0.62% against the dollar, reaching 1.30483 shortly after.