European Markets Plummet Amid Escalating Trade Tensions

European shares fell sharply on Thursday due to fears of a worsening trade war following new U.S. tariffs. The STOXX 600 index dropped 2.7%, its largest decline in eight months. The tariffs led to heightened market volatility and fell primarily on eurozone banks, resources, and oil sectors.

European stocks experienced a significant downturn on Thursday, marking the steepest daily drop in eight months. This decline stemmed from investor concerns over an escalating trade war after U.S. President Donald Trump introduced hefty tariffs.

The pan-European STOXX 600 index plummeted by 2.7%, tumbling to its lowest level since January. Key indices in Germany, Italy, and France ended over 3% lower, with Italy and France marking their worst fall in more than two years.

In response to the tariffs, which saw U.S. import duties rise to 20% for the European Union and 54% for China, both entities have pledged retaliatory actions. Market volatility surged, leading investors to pivot towards safe-haven assets like government bonds and the Japanese yen.

(With inputs from agencies.)