FX.co ★ European Stocks Close Lower

European stock markets experienced a decline after initial gains, culminating in a challenging week marked by escalating trade tensions between the United States and China. This situation renewed concerns about a potential global recession and prompted investors to shift away from US assets. The STOXX 50 index decreased by 0.6%, while the broader STOXX 600 dipped by 0.2%. China's finance ministry declared the imposition of additional tariffs amounting to 125% on American goods, a retaliatory measure following President Trump’s earlier decision to increase tariffs on Chinese imports to 145%. In a parallel development, the European Union temporarily halted its planned retaliatory tariffs for 90 days, aligning with Washington’s approach to encourage discussions. On the corporate front, Novartis saw its shares increase by 2.5% after announcing a substantial $23 billion investment in the US. Conversely, Stellantis experienced a 3.8% drop in its share value after reports indicated a 9% year-over-year decline in first-quarter vehicle shipments. Over the week, both indices recorded losses, with the STOXX 50 falling 2% and the STOXX 600 decreasing by 2.1%.