European Stocks Plummet Amid U.S. Fiscal Anxiety
European stocks experienced a downturn due to elevated U.S. Treasury yields and weak eurozone business activity. The STOXX 600 index saw significant losses, primarily in personal goods and automobiles. Concerns around the U.S. fiscal deficit and the impact of tariffs on the eurozone economy added to the market's gloom.
European stocks took a tumble on Thursday as rising concerns about U.S. fiscal health kept Treasury yields high. Weak eurozone business activity figures added to the bleak outlook.
The pan-European STOXX 600 index closed 0.6% lower, marking its most significant single-day drop since early April. This follows a recent peak earlier in the week, fueled by investor uncertainty over trade deal progress and the implications of U.S. tax cuts on national debt.
Remarkably, Britain's chemical firm Johnson Matthey surged over 30% after announcing its sale to Honeywell International, driving it to the top of the STOXX 600 index. Conversely, Tomb Raider owner Embracer plummeted 17% following a bleak earnings forecast.
(With inputs from agencies.)
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