Market Reaction to U.S. Tariffs

European stock markets experienced a sharp decline at the opening on Friday, as the imposition of new tariffs by the United States on several countries, including the EU, reignited trade war concerns. President Donald Trump's decision to impose steep duties on nations without trade deals has sent shockwaves through the markets, with a 15% levy still in place for EU goods.

Key Market Movements

The DAX fell by 1.02%, with Daimler Truck leading the losses at 4.32%. Similarly, the pan-European Euro Stoxx 50 and the CAC 40 dropped by 0.98% and 1.13% respectively, affected by significant declines in Axa shares. The FTSE 100 wasn't spared, dropping 0.35% as Intertek Group saw a sharp 7.85% plunge.

Currency and Inflation Watch

Amid the turmoil, the euro gained slightly against the dollar, while the pound remained stable. Investors are now turning their attention to the upcoming Eurozone inflation data, which could provide further direction for the markets.