Europe's stocks volatility jumps after Trump tariff threat

LONDON: The volatility gauge for euro zone stocks jumped on Monday to late-March levels after US President Donald Trump unexpectedly ratcheted up pressure on China by threatening to hike tariffs on Chinese goods this week.

The US equivalent of S&P 500 volatility jumped to late January highs with the index's futures sliding 1.7 percent.

The tariff threat, which marked a major escalation in tensions between the world's largest economies, hit global financial markets with the pan-European STOXX 600 index sliding more than 1.4 percent -- on track for its biggest drop in three months.

The volatility gauge is still way below from levels seen during the December sell-off in markets.

Volatility has resurfaced but it is far from levels consistent with panic mode, said Stephane Ekolo, an equity strategist at Tradition.