European equities are in pressure as global economic uncertainty and rising trade tensions affect investor mood. The Euro Stoxx 50 futures dropped 0.3%, and Germany's DAX futures fell 0.2% during early trading today. These losses are driven by inflation fears and geopolitical events, such as U.S. tariff measures against European imports.
Principal factors behind the market decline are:
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U.S. Tariffs on European Products: A 25% tax on imported cars, effective today, escalated trade tensions between Europe and the U.S.
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Recurring Inflation Fears: The U.S. core PCE price index increased to 2.8%, indicating chronic inflation pressures.
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Soft Economic Data Out of Europe: French inflation was flat at 0.9%, as Spanish inflation fell to 2.2%, indicating mixed recovery patterns across the continent.
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Corporate Losses: Ubisoft shares declined close to 2% after a significant investment by Tencent in a subsidiary, reflecting caution in the gaming and tech industry.
The overall economic outlook remains uncertain as investors consider the risks of inflation, trade policies, and corporate performance in Europe.
Sources: Trading Economics, Market Screener, PiQ on X