European Stocks Plunge on Trump and Middle East Tariff Risks
European stocks moved lower on Friday (May 8), with the Euro STOXX 50 down 1.1% and the STOXX 600 down 0.8%, extending losses from the previous session. Despite the weekend correction, weekly performance remained positive: the STOXX 50 rose 1.5% for the week, while the STOXX 600 added 0.8%.
Investor sentiment worsened after US President Donald Trump threatened to impose “much higher” tariffs on the European Union on July 4 if the bloc did not lower tariffs on US goods to 0%. The statement came after a call with European Commission President Ursula von der Leyen, who stated that the EU was still making “good progress” toward reducing tariffs ahead of the deadline.
Pressure also came from rising geopolitical tensions in the Middle East. The market responded to news that the US launched attacks on Iranian military targets following the attack on three US Navy destroyers in the Strait of Hormuz, increasing the risk premium on risk assets and heightening investor caution.
On the corporate side, earnings season remains in focus. IAG fell around 3% after cutting its annual profit forecast due to rising jet fuel costs, while Intesa Sanpaolo fell 1.1% ahead of its quarterly results release. Looking ahead, market participants will monitor developments in US-EU tariff negotiations and geopolitical risk dynamics that could potentially impact energy costs and issuer profit expectations. (asd)
Source: Newsmaker.id
