European Markets React to US Tariff Announcements and Inflation Data

European stock markets faced significant losses on Monday, as investors digested the implications of reciprocal tariffs proposed by US President Donald Trump and the impending 25% tariff on foreign-made vehicles. The anticipation of Germany's latest inflation rate update added to the market's unease.

Market Performance Highlights

The DAX led the downturn with a 2.04% drop, followed closely by the CAC 40 and Euro Stoxx 50, which fell by 1.90% and 1.93%, respectively. The FTSE 100 also saw a decline, dropping by 1.33%.

Currency Movements

Amid the market turmoil, the euro and pound sterling remained stable against the US dollar, trading at $1.08262 and $1.29414, respectively.