FX.co ★ European Stocks Fall on Tariff Threats

European equities experienced a significant downturn on Friday, driven by concerns over diminishing global trade flows. The STOXX 50 concluded the day down by 1.1% at 5,380 points, while the STOXX 600 also dropped by 1.1% to close at 547 points. According to reports, the European Commission is preparing to receive an official communication from U.S. President Trump, detailing tariffs that will affect the bloc. This move could diminish the demand from major foreign clients for products from European corporate leaders. Trump's decision follows his announcement of a 35% tariff on imports from Canada, effective from August 1st, and the intention to impose comprehensive tariffs ranging from 15% to 20% on most other trading partners. Losses were widespread across various sectors: LVMH, Kering, and Stellantis each declined approximately 4%, while banks such as UniCredit, BBVA, and Nordea fell over 2%, leading the sector's laggards. Despite Friday's downturn, the STOXX 50 still managed to finish the week with a 1.7% gain, and the broader STOXX 600 increased by 1%.