From Morningstar: 2025-04-03 05:45:00

European stocks fell sharply on Thursday, with the Eurostoxx 600 index down over 1% due to falls in Asia and expected slumps in the US markets. Financial services and luxury stocks were hit hardest, while defensive sectors like utilities and aerospace rose. UK stocks outperformed as Britain faced lower tariffs than the EU.

The potential impact of new tariffs on European stocks could be devastating, according to experts. Consumer goods, healthcare, and industrials sectors are expected to be worst affected, but negotiations may soften the blow. Eurozone and UK government bonds rallied as investors sought safety, while the US dollar dropped to a 6-month low.

UK’s FTSE 100 fell less than other European markets after facing a 10% tariff. Standard Chartered and HSBC were among the biggest fallers, while Diageo rose due to steady demand. Burberry fell as its supply chain is exposed to emerging markets. Financial stocks across Europe suffered losses, while automotive stocks fared better.

In response to the tariffs, Novo Nordisk’s stock rose as defensive stocks performed better. European drug manufacturers may benefit from the market conditions. Freight companies, however, are taking a hit, with A.P. Møller Mærsk falling 8.4% in Copenhagen. Overall, the impact of the tariffs on global trade dynamics remains to be seen.



Read more at Morningstar: Here’s Where Trump’s Tariffs Are Hitting European…