From Yahoo Finance: 2025-04-03 03:27:00

European shares plunged on fears of a trade war impact, with the STOXX 600 dropping 2.7%. Euro zone stocks saw their biggest fall in over two years, with a spike in volatility to an eight-month high. Investors sought safety in government bonds and the yen amid escalating tariffs by Trump.

Trump’s 10% tariff hike on U.S. imports raised EU levies to 20% and China’s to 54%, prompting countermeasures. Market strategist Hugh Gimber noted the negative market reaction, leading to bets of ECB rate cuts to stimulate growth. Sectors like banks, resources, and oil retreated over 5%.

The STOXX 600 is now 7% below its March record close due to tariff worries. Adidas and Puma stocks plummeted over 11% each, while luxury brands like LVMH lost 5.6%. Macron urged European companies to halt U.S. investments, with some defensive sectors like utilities gaining ground.

Barclays strategists warned of a potential drop in EU earnings growth due to weaker GDP from the trade war. Overall, European stocks suffered their worst day in eight months, amid escalating global trade tensions.

Read more: European shares slump as investors grapple with tariff fallout