European markets extend losses amid Trump tariff threats

Published 28-02-2025, 01:48 pm
© Reuters

Investing.com - European markets traded lower on Friday, extending losses logged in the prior session, as traders assessed the outlook for potential U.S. tariffs on the European Union.

By 04:06 ET (09:06 GMT), the pan-European Stoxx 600 had fallen by 0.6% to 553.92, Germany’s DAX had slipped by 0.4%, the CAC 40 in France had dipped by 0.5%, and the U.K.’s FTSE 100 was down 0.2%. 

Markets ended Thursday’s session lower following Trump’s statement that 25% tariffs on EU imports, including cars, would be announced “very soon.” EU leaders have vowed to roll out their own swift response to the levies.

Meanwhile, Trump added that previously-delayed 25% tariffs on goods from Canada and Mexico would take effect on March 4, while China will also face an additional 10% duty.

Separately, after talks with U.K. Prime Minister Keir Starmer, Trump hinted that Britain could escape tariffs if a trade deal is reached. “I think there’s a very good chance,” he said, adding that Starmer was “working hard” to secure an agreement.

In individual stocks, shares in Allianz (ETR:ALVG) edged lower after the insurance giant Allianz posted a 7.7% decline in its real estate holdings in 2024, in a sign of pressure facing the commercial property market in Germany, France and the United States.

Cement maker Holcim (SIX:HOLN) unveiled stronger-than-anticipated fourth-quarter earnings and announced that it had submitted a filing to the U.S. securities regulator about its plan to spin off its North American unit. The deal is tipped to be one of the largest in the construction sector this year.

Elsewhere, oil prices eased on Friday, heading for their first monthly decline since November, as a murky global economic outlook and tariff uncertainty outweighed supply concerns.

At 04:21 ET, Brent crude futures had dropped by 0.8% to $72.99 a barrel, while U.S. West Texas Intermediate crude futures had moved lower by 1.0% to $69.68 a barrel.

(Scott Kanowsky contributed reporting.)

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