The STOXX 50 lost 0.9%, and the STOXX 600 dropped 0.7% on Wednesday, reversing early flat trading, as investors digested concerns over global trade policies and economic uncertainties.
European stocks edge lower on Wednesday
Market sentiment remained cautious as traders continued to assess former U.S. President Donald Trump’s trade policies. On Tuesday, Trump reiterated his firm stance against broad exemptions on reciprocal tariffs, which are set to take effect on April 2nd, raising concerns about potential trade disruptions.
Meanwhile, European Union Trade Commissioner Valdis Dombrovskis met with top U.S. trade officials in an attempt to negotiate exemptions and prevent steep tariffs on EU goods next week. However, the outcome of the talks remained uncertain, adding to investor anxiety over potential retaliatory measures from the EU.
Investors await UK Spring Statement
Adding to market jitters, investors were closely watching the UK’s Spring Statement, where Chancellor Rachel Reeves is expected to announce significant spending cuts as part of a broader effort to balance public finances. Analysts are speculating on whether the measures will have long-term economic implications, particularly regarding growth and consumer spending.
Biggest decliners
On the corporate front, major European stocks saw declines, with SAP (-2.4%), LVMH (-1%), Novo Nordisk (-2.2%), and ASML Holding (-1.2%) all trading lower amid broader risk-off sentiment. Meanwhile, shares of Porsche rebounded slightly, rising 0.2% after the company reported a massive €20 billion after-tax loss. Despite the financial hit, Porsche reaffirmed its commitment to expanding investments and diversifying its portfolio, focusing on electric vehicles and software-driven mobility solutions.
Looking ahead, traders remain cautious, monitoring further developments in trade negotiations, macroeconomic data releases, and central bank policy signals that could shape market movements in the coming weeks.
