European stock markets see significant declines

(MENAFN) European stock markets saw significant declines on Monday, continuing a global sell-off triggered by the new tariffs imposed by US President Donald Trump. The pan-European Stoxx 600 index dropped over 6%, hitting its lowest point since December 2023. Major indexes saw heavy losses, with Germany's DAX falling nearly 10%, France's CAC 40 dropping 6.6%, and Italy's FTSE MIB losing 5.7%. London's FTSE 100 dropped 6%, its worst performance since the early days of the Covid-19 pandemic in 2020.

The declines were led by shares in defense companies and banks, with German arms manufacturer Rheinmetall falling nearly 24%, and UK-based Rolls-Royce losing 12%. Mining and investment firms were also significantly affected. The stock market turmoil followed Trump’s announcement of a 10% baseline tariff on all imports and additional tariffs on countries he deemed to have unfair trade practices. China retaliated with a 34% tariff on US goods, and several other nations, including the EU, vowed to impose countermeasures.

Trump defended the tariffs, stating that they were necessary to address trade imbalances with China, the EU, and other countries. Market analysts warned that the uncertainty would continue, with investors looking for clear action from the US government to calm the markets. The EU is preparing to begin talks with the US this week, with European Commission President Ursula von der Leyen cautioning that retaliation could occur if the negotiations fail.

MENAFN10042025000045015687ID1109413615