European Stocks Slip as Investors Lock in Gains

European stock markets edged lower on Friday, with investors taking profits after a strong week of gains. Despite this pullback, sentiment remained positive following U.S. President Donald Trump’s decision to delay reciprocal tariffs on major trading partners, including the European Union.

• As of 03:15 ET (08:15 GMT):
  • Germany’s DAX fell 0.4%
  • The U.K.’s FTSE 100 declined 0.3%
  • France’s CAC 40 remained largely flat

A Strong Week for European Stocks

• Germany’s DAX index hit a record high on Thursday, closing the week with a 4% gain.
• The pan-European Stoxx 600 index also reached an all-time high, leading Goldman Sachs to raise its 12-month price target for European equities.
• Key drivers behind the rally include:
  • Lower risk premiums
  • Falling energy prices
  • Improved consumer confidence
  • Stronger economic growth outlook

Relief Over Trump’s Tariff Delay

Markets breathed a sigh of relief after Trump postponed the enforcement of reciprocal tariffs until April. The executive order signed on Thursday outlined plans to impose tariffs matching or exceeding those set by key trading partners on U.S. imports.

• Earlier threats of immediate tariffs were not carried out, easing fears of an escalating trade conflict.
• However, Trump signaled a tough stance on the EU, criticizing its trade policies and regulatory fines imposed on U.S. tech giants like Google (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), and Facebook (NASDAQ:META).

Market Outlook

• European markets may remain volatile in the coming weeks as investors monitor:
  • Developments in U.S.-EU trade negotiations
  • Trump’s evolving tariff strategy
  • The broader economic outlook in the region
• While the recent rally was driven by optimism, uncertainty over U.S. trade policy could weigh on sentiment moving forward.