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European Stocks Fall as Auto Tariffs Weigh on Market Sentiment

European stock markets declined on Friday, as Trump’s 25% auto tariffs continued to pressure the region’s crucial automobile sector and dampen investor confidence.

Key Index Movements

  • Germany’s DAX: ↓ 0.5%
  • France’s CAC 40: ↓ 0.6%
  • UK’s FTSE 100: ↓ 0.3%

Auto Sector Under Pressure

The Trump administration’s tariffs on auto imports have sparked global concern, particularly in Europe, where car exports to the U.S. are significant.

  • The European automobiles and parts index is now at its lowest level since early December.
  • Europe’s automakers exported 800,000 vehicles to the U.S. last year.

German Chancellor Olaf Scholz criticized Trump’s move:

“The U.S. has chosen a path at whose end lies only losers, since tariffs and isolation hurt prosperity, for everyone.”

Economic Indicators

  • Germany’s GfK consumer sentiment index:
    • Inched up to -24.5 (from -24.6), signaling persistent weak sentiment.
  • UK retail sales:
    • Surged 1% in February, defying expectations of a 0.4% decline.
    • Clothing and household goods spending led the increase.

With economic uncertainty rising and trade tensions escalating, investors remain cautious.

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