European stocks slumped at the open Monday after US President Donald Trump said he would impose EU tariffs after launching trade wars with Canada, China and Mexico.
The Paris and Frankfurt stock markets initially shed more than two per cent, driven down by heavy losses for automakers, while London’s drop was less sharp after Trump indicated that Britain would likely avoid immediate tariffs.
Around 20 minutes after the open, markets were slightly firmer, with Frankfurt down 1.6 per cent and London losing one per cent.
Europe’s losses along with falls for the euro and British pound come after Asian stock markets and the yen mostly tanked Monday.
“The outlook for global equities just got much gloomier,” forecast Chris Beauchamp, chief market analyst at online trading platform IG.
“We can expect investors to sell first and ask questions later… Hiding places are likely to be few and far between, and for the moment it looks like the dollar is the only winner,” he noted.
