European Stocks Slide Amid Renewed U.S.-China Trade Tensions

European stocks fell, weighed by renewed U.S.-China trade tensions and disappointing forecasts from Michelin. The STOXX 600 index dropped due to concerns over global market stability. Stock performances of auto and mining sectors especially took a hit, worsening investor sentiment across the continent.

European stocks experienced a downturn on Tuesday, driven by escalating U.S.-China trade tensions and a significant forecast slash from Michelin. The STOXX 600 index fell by 0.5% as of 0839 GMT, reaching a near two-week low after a fleeting recovery on Monday.

The market saw a sharp sell-off last Friday when U.S. President Donald Trump threatened to impose a 100% tariff on Chinese goods, reacting to Beijing's control over rare earth exports. Conversations over the weekend between the two nations cultivated a milder stance, but new port fees on ocean shipping enhanced market distress.

Industry-specific impacts were evident: economic-sensitive miners fell by 2%, and the auto index declined by 1.6%, with Michelin shares dropping 9%. Comments from City Index's Fiona Cincotta emphasized concerns around global trade friction and economic stability. In contrast, Ericsson saw a 14.7% rise, signaling resilience despite broader market struggles.

(With inputs from agencies.)