European Markets Jitter: U.S. Policy Fluctuations Influence Share Movements

European shares saw declines amid volatile U.S. trade policies and a lesser-than-expected U.S. jobs report. The STOXX 600 ended a winning streak as President Trump suspended tariffs on Canada and Mexico, while imposing ones on China. Uncertain trade dynamics and economic data fluctuations added to investor concerns.

European shares closed lower on Friday, affected by erratic changes in U.S. trade policy and an unexpected U.S. jobs report. The STOXX 600 dropped 0.7% for the week, ending a 10-day winning streak.

President Trump's suspension of the 25% tariffs on Canadian and Mexican goods, initially imposed earlier in the week, marked another twist in his trade approach, inciting market volatility. The tariffs are increasingly viewed as a negotiation strategy by investors.

Meanwhile, China's exports to the U.S. now face a 20% tariff, unsettling luxury stocks exposed to Chinese consumers. Industrial and mining stocks also fell, with telecommunication stocks seeing gains. Despite softer U.S. job data, market sentiment showed mild recovery. German bond developments and ECB's interest rate decisions further influenced market movements.

(With inputs from agencies.)