The valuations of major European exporters have already taken into account the potential for trade tariffs associated with a Donald Trump election victory, according to Barclays strategists.

EU equities have been negatively affected by concerns over tariffs. The research team, led by Emmanuel Cau, stated that a full-scale trade war could result in a significant decline in earnings per share growth, potentially impacting it by a high single-digit percentage.

This assessment highlights the market's sensitivity to geopolitical developments and their impact on European stock performance.