European stock markets under pressure from US tariff threats

European equities retreated from near record highs after Donald Trump announced plans to impose new tariffs on European countries, raising trade and geopolitical tensions. The Stoxx Europe 600 fell 1.2%, with losses concentrated in sectors most exposed to the US market, notably automotive and luxury goods. Shares of LVMH, Volkswagen, and Mercedes-Benz dropped sharply, while defense firms such as Rheinmetall gained on heightened geopolitical risk. Credit risk indicators in Europe widened, and investors sought short-term government bonds.

Analysts warn that a broader trade conflict with the US could trigger a deeper market correction and undermine profit growth expectations for 2026.

(pb.pl)