FX.co ★ European Stocks Tumble 5% Led by Banks

European stocks experienced a sharp downturn on Friday as investors faced the impact of new US tariffs and increasing fears of a recession. Leading the losses were the banking sector, which saw an 8.5% decline following a previous 5.5% drop on Thursday, as apprehensions regarding decelerating growth intensified. In response, China imposed a 34% tariff on US goods, while President Trump accused Beijing of "panicking." Meanwhile, the European Commission announced preparations for countermeasures, and French President Macron urged European companies to halt planned investments in the United States. The Stoxx 50 Index decreased by 5.3% to 4,843, its lowest point since December, with the Stoxx 600 falling 5.1% to 496, culminating in an 8% weekly decline, the worst since March 2022. German banks Deutsche Bank and Commerzbank experienced declines of 10.1% and 5.1%, respectively, while French banks Societe Generale and BNP Paribas dropped 11% and 7.3%. In Spain, banks such as Santander, Bankinter, Caixabank, and Sabadell reported losses ranging from 9% to 11%.