The STOXX 50 fell 0.5%, and the STOXX 600 was down 0.3% on Friday, extending losses from the previous session as concerns over the economic outlook continued to weigh heavily on investor sentiment.
European equities fall, travel stocks weigh
This ongoing uncertainty was driven by a combination of factors, including trade tensions and geopolitical risks. The U.S. is set to impose reciprocal tariffs on April 2, adding to fears that escalating trade barriers will further disrupt global trade flows. While the EU's countermeasures have been delayed until mid-April, the looming tariff actions continue to stoke concerns over their impact on European businesses and the broader economic climate.
Sectors falling most
Among the hardest-hit sectors, travel and leisure stocks were notably under pressure. The sector faced additional headwinds when London’s Heathrow Airport was forced to close on Friday due to a power outage caused by a fire at a nearby electrical substation. The closure led to significant disruptions in travel, exacerbating the challenges faced by airlines and related companies. Ryanair (-1.1%), EasyJet (-2.2%), and International Airlines Group (IAG) (-3.3%) were all under pressure as investors reacted to the negative news. The situation at Heathrow added to the sector's ongoing struggles, as the travel industry continues to navigate fluctuating demand and operational challenges.
Eyes on political news in Germany
Meanwhile, traders are closely watching the political developments in Germany, particularly the vote on the debt brake amendment in the country's upper house. The amendment has already been approved by the lower house and is seen as a crucial measure for Germany's fiscal policy. The outcome of the vote could have significant implications for future government spending and economic stability in the eurozone's largest economy. Despite Friday's decline, the STOXX 50 is down 0.9% for the week, while the STOXX 600 has gained nearly 1% so far. This divergence in performance highlights the mixed sentiment among European investors, with certain sectors showing resilience, while broader market concerns persist. As the week progresses, market participants will be closely watching these key events for further signs of economic and political stability in Europe.
