FX.co ★ European Shares Tumble to 2-Month Lows

The STOXX 50 experienced a significant drop, declining by over 2% to reach a near two-month low of 5,200. Similarly, the broader STOXX 600 index fell 1.8% to 532. These market movements primarily reflect investor reactions to recent developments in the ongoing trade conflict, as well as important inflation data releases. Notably affected was the basic resources sector, which plunged to a six-month low. Additionally, stocks in the banking, chemical, and construction materials sectors also encountered substantial downturns. In a recent announcement, U.S. President Trump stated that the forthcoming reciprocal tariffs, set for release on Wednesday, would target all countries, extending beyond a previously considered list of 10 to 15 nations with the largest trade imbalances. Reports further indicate that Trump has urged his advisers to pursue a more assertive stance on tariffs. Turning to economic indicators, flash CPI reports disclosed that Germany's inflation rate declined to a four-month low of 2.2% in March, whereas Italy's inflation rate climbed to a 1.5-year peak of 2.0%. Over the course of March, the STOXX 50 has dropped by roughly 6%, while the STOXX 600 has decreased by 5.5%.