European Stocks Drop as Tariff Jitters Trigger Broad Retreat
European equities retreated on Friday as the quickly-evolving tariff backdrop and uncertainty over interest rates prompted investors to lock in profits.
The Stoxx Europe 600 Index was down 0.7% by 8:16 a.m. in London, with most industry sectors in the red. The risk-off move came ahead of US jobs data, which traders will scrutinize for clues on the path for Federal Reserve policy.
“The uncertainty is coming from the White House as trade and other policy flips and flops on a daily basis,” said Jamie Constable, market strategist at London-based Singer Capital Markets.
Among individual movers, Universal Music Group NV shares rallied more than 6% after the record label’s sales beat estimates thanks to growth from subscriptions. Luxury goods maker Salvatore Ferragamo SpA slumped 12% after reporting a wider-than-expected loss, with cautious commentary on demand.
Headlines on trade have seen European stocks whipsaw this week, with investors scrambling to decipher the latest delay to US tariffs on goods from Canada and Mexico.
Nevertheless, Germany’s pledge to spend hundreds of billions of euros in defense and infrastructure investment have given European equities a fresh boost and sent the benchmark to a recent record. Some defense stocks, such as Thales SA and QinetiQ Group Plc, have added nearly a third to their value in the space of just a week.
Investors are further digesting the European Central Bank’s signal that its easing phase was drawing to a close, even as policymakers cut rates as expected on Thursday.
Source : Bloomberg
