FX.co ★ European Markets Poised for Sharp Losses

European stock markets were poised for a significant decline at Thursday's opening, as investors responded to President Donald Trump's assertive tariff policies. Trump announced an initial 10% tariff on all imports, including a more substantial 20% charge on products originating from the European Union. Traders will be particularly focused on European car manufacturers, given the immediate imposition of a 25% tariff on imported vehicles under Trump's new measures. In response, European Commission President Ursula von der Leyen indicated that the EU is readying retaliatory actions should negotiations with the US not yield a resolution. Apart from the trade tensions, market participants will scrutinize the latest manufacturing and services PMI reports to gain further perspective on the region’s economic climate. In premarket activity, both Euro Stoxx 50 and Stoxx 600 futures indicated a downturn of approximately 2%.