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European equity markets suffered broad-based declines today, as heightened global trade tensions triggered a sell-off in auto stocks, banks, and industrial sectors. The downturn followed the U.S. imposing tariffs on Canada and Mexico, with China retaliating through tariffs on U.S. agricultural goods and export restrictions on certain defense companies.
Auto Stocks Take a Hit
The European auto sector was among the hardest hit, as fears over potential supply chain disruptions and rising trade costs weighed on investor sentiment.
- Stellantis (NYSE:STLA): -4.5%
- Mercedes-Benz (OTC:MBGAF, OTC:DDAIF): -5%
- BMW (ETR:BMWG, ETR:BMW): -5%
- Volkswagen (ETR:VOWG_p, ETR:VOW3): -4%
Auto parts suppliers also suffered:
- Forvia: -8%
- Michelin (EPA:MICP, EPA:ML): -2%
- Pirelli (BIT:PIRC): -5%
- Continental (ETR:CON): -8.5%
Spanish & German Banks Feel the Pressure
Spanish banks with strong exposure to the Mexican market declined:
- BBVA (BME:BBVA): -3%
- Santander (BME:SAN): -3%
Germany’s Deutsche Bank (ETR:DBKGn) also fell 3%, reflecting broader risk aversion in European financials.
Shipping & Metals Sectors Decline
Given their sensitivity to global trade flows, shipping stocks saw declines:
- Maersk (CPH:MAERSK): -3%
- Hapag-Lloyd (ETR:HLAG): -3.5%
Metals and mining companies also suffered:
- Thyssenkrupp (ETR:TKAG, ETR:TKA): -3%
- ArcelorMittal (AMS:VIE:AMS2, NYSE:MT): -2%
- SSAB (STO:SSAB): -3%
- Rio Tinto (LON:RIO) and Anglo American (LON:AAL) saw declines as well.
Market Outlook: Uncertainty Looms
The market reaction underscores concerns over prolonged trade disputes, which could disrupt supply chains, increase costs, and dampen corporate earnings across key European sectors. The auto industry remains particularly vulnerable, given its reliance on cross-border manufacturing and sales.
With no immediate resolution in sight, investors remain cautious, assessing the wider implications of escalating trade wars on global economic growth.
