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China imposes tariffs on US imports triggering sell-off in European markets
European markets experienced a significant sell-off on April 4, 2025, following China's announcement of 34% retaliatory tariffs on US imports, raising fears of a global trade war. Major UK banks and global mining companies saw sharp declines, with Barclays, NatWest, and Lloyds down over 7%. The oil price also plummeted to its lowest since August 2021, prompting Goldman Sachs to lower its forecasts for crude prices amid escalating tariff tensions. Defensive stocks like SSE and British American Tobacco managed to rise amidst the turmoil.
European stocks opened mixed as German Chancellor Olaf Scholz lost a confidence vote, paving the way for early elections in February amid economic struggles. Meanwhile, Royal Mail's parent company is set to be sold to Czech billionaire Daniel Kretinsky, and shares of Canal+ fell 15.7% on its London debut. Confidence among U.K. manufacturers has dropped to a yearly low due to rising costs and economic uncertainty.
tech stocks tumble as earnings disappoint and japanese markets react to political shifts
Wall Street faced significant losses as disappointing earnings from major tech firms, including Microsoft and Meta, triggered a sell-off, with the NASDAQ dropping 2.76%. Japanese stocks rallied despite the yen weakening after the ruling party lost its parliamentary majority, while Chinese equities fell following a lack of new fiscal measures despite recent stimulus efforts.
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