European Markets React to New US Tariffs

European stock markets experienced significant declines in premarket trading this Wednesday, as the implementation of sweeping US tariffs on imports from various countries, including a 104% duty on Chinese goods, took effect. This move has notably dampened investor sentiment across the globe.

Market Performance Highlights

By 8:00 am CET, the DAX had plummeted by 3.74%, leading the downturn among European indices. The FTSE 100 wasn't far behind, dropping by 3.18%, while the CAC 40 and Euro Stoxx 50 saw declines of 1.87% and 3.84%, respectively. Switzerland's SMI and Italy's FTSE MIB also faced sharp drops, losing 3.49% and 3.85%, with Spain's IBEX 35 decreasing by 1.73%.

Currency Movements Amidst Market Turmoil

In the currency markets, the euro appreciated by 0.91% against the dollar, trading at $1.10584, while the pound gained 0.56%, reaching $1.28371 by 7:58 am CET.