FX.co ★ European Markets Set to Extend Losses

European equity markets were poised for a downward opening on Friday, prolonging the significant downturn experienced the previous day. This decline comes amid escalating trade tensions that have sparked fears of a worldwide recession. In a significant move, U.S. President Donald Trump announced a 20% tariff on imports from the EU. This has led European leaders to caution of retaliatory measures and to advise businesses to rethink their investments in the United States. The automotive industry has been notably affected, grappling with a 25% tariff imposed by the U.S., which exacerbates existing concerns surrounding duties on steel and aluminum. European firms heavily dependent on international trade and supply chains, particularly those in the financial and technology sectors, have been the most impacted. As a result, pre-market indications showed futures for the Euro Stoxx 50 and Stoxx 600 indices down approximately 0.4%.