FX.co ★ European Markets Set to Extend Selloff

European equity markets appeared set for additional losses on Monday, continuing the downward trend initiated last Thursday. This slump has been largely driven by President Trump's intensifying trade war, which has heightened concerns about a potential global recession. Following the United States' imposition of comprehensive tariffs on all countries, China retaliated with its own tariffs on American goods, with other significant economies anticipated to enact similar measures. Investors are now looking to European leaders for a unified response, as the region contemplates strategies to protect its economic interests. Despite the market turbulence, the Trump administration has indicated it does not plan to reverse its stance. Additionally, investors will be closely examining new German trade data and Eurozone inflation statistics. In premarket trading, futures for the Euro Stoxx 50 and Stoxx 600 were both down more than 3%.