European Shares Tumble Amid Intensified U.S. Trade War Tensions

European shares hit their lowest since January 2024 amid intensified U.S. trade war tensions, with the STOXX 600 index dropping 4.5%. Fears of economic downturn as Germany's index hit bear market territory escalated. The volatility index surged; retaliatory EU measures loomed, heightening market uncertainty.

In a tumultuous trading session on Monday, European shares plunged to hit their lowest level since January 2024. Aggravated by U.S. President Donald Trump's persistent trade aggression, the pan-European STOXX 600 index slid 4.5%, marking its fourth consecutive session of losses.

Germany, heavily reliant on trade, saw its benchmark index dive by as much as 6.4%. The German index dipped into bear market territory before recovering slightly to close down 4.3%. Investor unease was palpable, observed through the volatility index reaching a three-year high of 46.72.

Despite partial recovery spurred by a report suggesting Trump might pause tariffs, swift denial from the White House brought back previous losses. Amid these disorders, European banks entered bear market status with a stark 20.9% drop, while industries like defense saw a significant decline. The situation underscored the global economic disruption potentially arising from ongoing trade conflicts.

(With inputs from agencies.)