European Stocks Weaken, US Tariff Uncertainty Strengthens
European stocks closed lower on Monday (February 23rd), as global markets returned to cautious mode following the latest tariff policy signals from US President Donald Trump. Pressure arose as investors reassessed trade risks and their impact on corporate profit prospects amid a rapidly changing policy climate.
The pan-European Stoxx 600 index ended the session down nearly 0.5%, with most major markets trading in the negative zone. This decline signaled a waning risk appetite after last week's rally, driven by sentiment that the US tariff burden could be eased.
Last week, European markets briefly rallied after the US Supreme Court ruled against most of Trump's "reciprocal" tariffs. However, the mood changed when Trump announced over the weekend that he would implement a new global tariff of 15%, up from the previously proposed 10%.
Trump said the new tariffs would "take effect immediately" in a post on Truth Social, signaling that additional tariffs could follow. This statement reignited uncertainty over US trade policy, which markets typically quickly interpret as a catalyst for volatility.
The resurgence of tariff concerns weighed on sentiment in cyclical stocks and triggered defensive action, as higher tariffs risk increasing costs, disrupting supply chains, and complicating the planning of multinational companies. Investors are now awaiting clarity on implementation, country coverage, and potential retaliatory responses from trading partners.
On the corporate side, JD Sports shares actually rose 3.4% by the end of the session after the British sports retail giant announced a buyback plan to return approximately £200 million to investors. This corporate action helped cushion pressure in the retail sector, although macro sentiment remains the main market driver.
Source: Newsmaker.id
