The EuroStoxx50 fell by 4.55% to 4,656.41 points, while the Eurostoxx 600 declined 4.50% to 474.01 points.
Stock markets in London, Paris, and Frankfurt decreased by 4.38%, 4.78%, and 4.26% respectively, while those in Madrid and Milan depreciated by 5.12% and 5.18%.
The Lisbon stock exchange was not spared from losses, with its main index, the PSI, dropping 5.63% to 6,262.28 points.
European stocks traced the plunge of their Asian counterparts, which plummeted today, while on Wall Street, the U.S. markets are continuing another session in the red, with losses exceeding 1%.
The market is being impacted by the implementation of tariffs imposed by U.S. President Donald Trump on the United States’ trading partners and by the retaliatory measures announced by China, which may be followed by other major economies like the European Union.
President Trump announced the imposition of reciprocal tariffs on U.S. trading partners on April 2nd, but expressed his willingness to negotiate if the offers are “phenomenal.”
Analysts and investment banks have been revising downward their estimates for global economic growth, particularly for the U.S. GDP, following the announcement of new tariffs, which are higher than expected.
Investment bank Goldman Sachs today increased the probability of a recession in the United States from 35% to 45%, while JPMorgan places that probability at 60%, S&P Global at 30-35%, and HSBC at 40%.
