On Tuesday, European stock markets experienced a downturn as the U.S. imposed a 10% tariff on Chinese imports, and China responded with its own retaliatory tariffs and export restrictions. This development has heightened concerns about a potential trade war between the world's leading economies.
The pan-European STOXX 600 index declined by 0.6%, reaching 531.46, following a 0.9% drop on Monday. The German DAX, France's CAC 40, and the U.K.'s FTSE 100 also saw decreases, ranging from 0.5% to 0.6%.
In London, Vodafone shares fell by 6% after the telecommunications giant reported another drop in revenue in its crucial German market during the third quarter. Additionally, Diageo, the leading spirits producer globally, saw its shares plunge 4% after it withdrew its long-held sales growth forecast.
Conversely, Infineon Technologies experienced a 10% surge. The German semiconductor company revised its full-year revenue forecast upwards, benefitting from higher-than-anticipated earnings in the first quarter.
Meanwhile, BNP Paribas, a French banking institution, gained nearly 2% after announcing a new share buyback program and a more attractive dividend than expected.
Swiss bank UBS, however, dropped 2.4% in share value, even though it reported profits for the final quarter of 2024 that exceeded market expectations.
