Today's Edition
ABU DHABI (ALETIHAD)
European stocks edged lower on Friday, capping a volatile week marked by abrupt US tariff shifts that deepened fears over the economic fallout of a trade war.
The pan-European STOXX 600 slipped 0.3% in volatile trade at 0758 GMT, after tumbling to a near 1-1/2-year low this week after US President Donald Trump first imposed, then temporarily rescinded some steep reciprocal tariffs on its trading partners.
The benchmark index gave up early gains after China raised tariffs on US goods to 125% from 84%, as the trade war between the world’s two largest economies escalated. Trump's 90-day tariff pause excluded China, where duties have climbed to 145%.
Regional indexes were mixed, with trade-exposed Germany falling 0.2% after registering its steepest one-day percentage gain since 2022 in the previous session.
Trump’s tariff pause prompted the EU to hold off on retaliatory levies, with finance ministers set to meet Friday to weigh talks with Washington or plan for US tariffs.
"We have to remember that the tariff-pause is only 90 days and there are an awful lot of countries in the queue to get a trade deal in those 90 days," said Nick Saunders, chief executive officer at Webull UK.
French President Emmanuel Macron said Trump's decision this week for a 90-day suspension on tariffs gave room for only a 'fragile pause'.
The European Central Bank is particularly concerned about financial stress spreading from non-bank financial firms, such as hedge funds, to regular lenders in periods of market stress, ECB supervisor Sharon Donnery said on Thursday.
Focus will shit to ECB's policy meeting next Thursday, where money markets are about near certain of a quarter-point rate cut.
Among stocks, Hexagon shares fell 9.6% after the Swedish industrial technology group said its adjusted operating profit fell around 8% in the first quarter.
Zurich Insurance tumbled 6.2% ahead of its annual general meeting.
Stellantis shares dropped 4.3% after the carmaker's first-quarter shipments were down 9% compared to last year.
