FX.co ★ European Stock Sell-off Deepens

European stocks experienced a sharp downturn on Friday, with banking sectors facing substantial losses, following China's announcement of a 34% tariff imposition on all U.S. goods effective April 10. This move was a direct response to the extensive U.S. tariffs. The STOXX 50 index fell by 5% to 4,840 points, marking its lowest since early December, while the broader STOXX 600 plunged by 4.9% to 497, hitting its lowest level since August. Both indexes are poised for notable weekly declines, representing the most significant drop since March 2022. In response, the European Commission is preparing its own countermeasures, and French President Emmanuel Macron has urged European firms to reconsider planned investments in the United States. Among European banks, Deutsche Bank and Commerzbank in Germany saw declines of 10.7% and 6.1%, respectively. Meanwhile, France's Societe Generale and BNP Paribas experienced losses of 11.6% and 8%. Spanish banks including Santander, Bankinter, Caixabank, and Sabadell observed drops ranging from 9% to 13%.