European Markets Tumble Amid Auto Slump and Trade Tensions
European stocks fell on Friday due to a sharp decline in automobile shares and anticipation of EU-U.S. trade talks. The STOXX 600 index dropped 0.6%, with notable declines from UK’s FTSE 100 and carmakers like Valeo and Volkswagen. Trade agreements with Japan, Indonesia, and the Philippines offered some investor relief.
European markets experienced a downturn on Friday, reversing gains from the previous session, as the automotive sector saw significant declines. Investors are closely monitoring updates on EU-U.S. trade negotiations ahead of the approaching tariff deadline set by U.S. President Donald Trump.
The pan-European STOXX 600 index fell 0.6% to 548.16 points, despite achieving a six-week high on Thursday. The index remains on track for modest weekly gains, but the UK's FTSE 100 also saw a 0.4% decrease, stepping back from its all-time peak on Thursday.
In particular, the European automobile sector suffered a 1.4% drop, largely driven by Valeo, which reduced its full-year sales forecast, causing its shares to plummet by 12.4%. Volkswagen and its truck unit Traton also faced declines, while Puma reported a substantial fall of 18.7% amid lowered full-year outlooks and weak quarterly results.
(With inputs from agencies.)
Google News