European stock markets reversed early gains to close lower, capping a turbulent week dominated by escalating trade tensions between the US and China, which reignited fears of a global recession and triggered an aggressive pivot away from US assets.
The STOXX 50 fell 0.6% and the broader STOXX 600 slipped 0.2%. China's finance ministry announced additional tariffs of 125% on U.S. goods, in response to President Trump's decision a day earlier to raise levies on Chinese imports to 145%. In Europe, the EU temporarily suspended its planned retaliatory tariffs for a 90-day period, mirroring Washington's move in an effort to foster dialogue.
On the corporate front, Novartis shares rose 2.5% after the company announced a $23 billion investment in the US, while Stellantis sank 3.8% following a report of a 9% year-over-year drop in first-quarter vehicle shipments. For the week, both benchmarks posted losses, with the STOXX 50 down 2% and the STOXX 600 falling 2.1%.
Source: Trading Economics
