European Stocks Suffer Amid U.S.-China Trade Jitters

European stocks fell on Tuesday due to renewed U.S.-China trade war concerns and a forecast cut by Michelin. The STOXX 600 index hit a two-week low following global sell-offs after Trump's tariff announcements. Miners led the decline, while Ericsson's earnings exceeded expectations, boosting its shares.

European stocks experienced a decline on Tuesday amid escalating worries regarding a potential trade war between the United States and China. The downturn was compounded by a significant drop in Michelin's shares, which hit a two-year low after the French tyre manufacturer cut its annual forecast.

The pan-European STOXX 600 index decreased by 0.6% as of 0718 GMT, reaching a near two-week low. This followed a temporary lift on Monday. The global markets witnessed a sharp sell-off on Friday, initiated by U.S. President Donald Trump's threat to introduce additional 100% tariffs on Chinese goods, retaliating against Beijing's rare earths export controls.

Miners saw the largest decline among European sectors, plummeting 2%, while automakers dropped by 1.5%. In contrast, Swedish telecoms equipment giant Ericsson saw its shares soar by 12.4% after reporting stronger-than-expected quarterly earnings, downplaying the impact of U.S. tariffs.

(With inputs from agencies.)