European stock indices are under pressure on Friday, with the Stoxx 600 down 0.65%, the DAX falling 0.89%, and the CAC 40 slipping 0.88%. The decline is primarily driven by President Trump’s threats of “significantly higher” tariffs on EU goods unless the bloc reduces its tariffs on US imports to zero, escalating trade tensions. Additionally, geopolitical uncertainty is heightened by ongoing skirmishes between the US and Iran in the Strait of Hormuz.

Sector performance reflects this turmoil, with energy stocks benefiting from rising oil prices, while finance and industrial sectors struggle, driven down by significant losses in Allianz and Rheinmetall. Commerzbank reported a 9.4% rise in net profit, raising its full-year forecast amid a backdrop of job cuts due to a potential hostile takeover by UniCredit, which is facing resistance from both the bank’s board and the German government.

Market professionals should remain vigilant as trade tensions could further impact market sentiment and sector performance, particularly in finance and industry, while energy stocks may continue to see volatility amid fluctuating oil prices.

Source: xtb.com