European Shares Sink 6%
The STOXX 50 sank 6.8% on Monday, plunging to its lowest level since August, while the STOXX 600 tumbled 5.6% to reach lows not seen since December 2023.
The sell-off extended steep losses from the previous week, which marked the worst weekly performance since 2020. Investor sentiment remains under heavy pressure as concerns mount over a deepening trade war.
The latest blow came as China announced retaliatory measures last Friday, imposing 34% tariffs on a wide range of US goods, escalating tensions and fueling fears of a broader economic fallout. Traders are now closely watching for the European Union’s response to President Trump’s latest tariff announcements.
The market decline was broad-based, with banks, energy, and insurance sectors among the hardest hit. Defense stocks also came under pressure, as investors locked in profits and raised cash by selling previous winners. Novo Nordisk (-5.1%), SAP (-6%), LVMH (-5.1%) and Nestle (-5.3%) were sharply lower.
Source: Trading Economics