European markets slide as trade war fears weigh on sentiment
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European stocks opened lower on Tuesday, extending losses as investors reacted to escalating US-China trade tensions. The STOXX 600 index dropped 0.3%, pressured by declines in automobiles and telecom stocks, while Vodafone tumbled 5.6% after weak earnings from Germany.
Trade War Concerns Hit Risk Sentiment
China retaliated against the US’s 10% tariffs by announcing levies on American imports, reigniting fears of a prolonged trade war between the world’s largest economies. While Trump’s decision to delay 25% tariffs on Mexico and Canada provided temporary relief, market sentiment remains fragile as investors brace for further policy moves. Automobile stocks fell 1%, reflecting broader concerns over global supply chains and potential disruptions to the sector. Meanwhile, telecom stocks slid 0.8%, with Vodafone’s sharp decline adding to pressure.
Infineon Leads Gains, Technology Outperforms
The selloff was partially offset by Infineon’s 11.1% surge, after the German chipmaker reported stronger-than-expected Q1 revenue and raised its full-year outlook. The results lifted the broader technology sector, which gained 1.41%, making it the best-performing segment of the day.
Banking Stocks Show Resilience
The European banking sector edged 0.3% higher, led by BNP Paribas, which gained 1.6% after posting a solid earnings beat for Q4. However, the French lender lowered its 2025 profit target, tempering investor optimism.
Market Outlook: Volatility Likely to Persist
With trade war tensions, corporate earnings, and macroeconomic uncertainty shaping sentiment, European markets remain vulnerable to further downside pressure. STOXX 600’s next support zone lies near 465 points, while a potential rebound could face resistance near 472 points. Investors will be closely monitoring US and China’s next policy moves, as well as upcoming earnings reports from key European firms, for further market direction.
Trade War Concerns Hit Risk Sentiment
China retaliated against the US’s 10% tariffs by announcing levies on American imports, reigniting fears of a prolonged trade war between the world’s largest economies. While Trump’s decision to delay 25% tariffs on Mexico and Canada provided temporary relief, market sentiment remains fragile as investors brace for further policy moves. Automobile stocks fell 1%, reflecting broader concerns over global supply chains and potential disruptions to the sector. Meanwhile, telecom stocks slid 0.8%, with Vodafone’s sharp decline adding to pressure.
Infineon Leads Gains, Technology Outperforms
The selloff was partially offset by Infineon’s 11.1% surge, after the German chipmaker reported stronger-than-expected Q1 revenue and raised its full-year outlook. The results lifted the broader technology sector, which gained 1.41%, making it the best-performing segment of the day.
Banking Stocks Show Resilience
The European banking sector edged 0.3% higher, led by BNP Paribas, which gained 1.6% after posting a solid earnings beat for Q4. However, the French lender lowered its 2025 profit target, tempering investor optimism.
Market Outlook: Volatility Likely to Persist
With trade war tensions, corporate earnings, and macroeconomic uncertainty shaping sentiment, European markets remain vulnerable to further downside pressure. STOXX 600’s next support zone lies near 465 points, while a potential rebound could face resistance near 472 points. Investors will be closely monitoring US and China’s next policy moves, as well as upcoming earnings reports from key European firms, for further market direction.