FX.co ★ European Stocks Close Lower for 2nd Session

European stock markets concluded Tuesday with notable declines, continuing the significant downturn from the previous day. This was primarily due to intensified pressures stemming from tariff threats posed by the United States. The Eurozone's STOXX 50 index decreased by 0.6%, closing at 5,893, while the STOXX 600 index fell by 0.7%, ending at 603. U.S. President Donald Trump reiterated his administration's interest in potentially acquiring Greenland from Denmark, following the imposition of tariffs on key European trading partners. Additionally, he threatened a substantial 200% tariff on French wines, particularly as French President Macron opted not to join Trump's "Board of Peace." This climate of uncertainty adversely affected the financial sector, with banks and insurers experiencing steep declines. This was compounded by a rise in Japanese bond yields, exerting pressure on European government debt markets. Companies such as Allianz, Santander, and Intesa Sanpaolo saw their shares fall by over 2.5%. Meanwhile, businesses with ties to French wine and Champagne markets, like LVMH, witnessed milder impacts in response to the new tariff threats, with LVMH shares decreasing by 2%.