European Markets React to Tariff War

In a dramatic turn of events, major European stock indexes faced significant losses following China's decision to impose higher tariffs on US goods. This move was a direct response to the United States increasing its tariffs on Chinese exports to a staggering 125%, with reports suggesting figures even reached 145%.

Indexes Across Europe Suffer

By mid-morning CET, the DAX had plummeted by 1.37%, losing 281 points. The CAC 40 wasn't far behind, declining by 0.91%. Similarly, the Euro Stoxx 50 and FTSE 100 saw decreases of 1.03% and 0.50%, respectively. Spain's IBEX 35 and Italy's FTSE MIB also experienced drops, with the latter sinking by a notable 1.75%. The Swiss Market Index (SMI) decreased by 0.96%, shedding 107 points.

Currency Markets Respond

Amidst the turmoil, the euro surged by 2.14% against the dollar, reaching $1.14373. The pound sterling also gained strength, increasing by 1.12% to $1.31156 against the US currency.