FX.co ★ European Stocks Back in the Red

European equity markets experienced a sharp downturn on Wednesday, reversing gains made in the previous session. This decline was prompted by escalating trade tensions after the US implemented new tariffs, including a total levy of 104% on imports from China. The STOXX 50 index fell 2.6%, and the more comprehensive STOXX 600 dropped 2.5%, collectively erasing around 2% of Tuesday's gains. The downturn affected all sectors, with pharmaceuticals, oil & gas, basic resources, and real estate suffering the most significant losses. Concurrently, the European Commission is contemplating retaliatory tariffs of up to 25% on various US exports, valued at roughly €22.1 billion. European Commission President Ursula von der Leyen engaged in discussions with Chinese Premier Li Qiang on Tuesday, proposing a "negotiated resolution" to address what she termed as "the widespread disruption caused by the US tariffs."