FRANKFURT: European shares fell on Wednesday, weighed by losses in healthcare stocks, as investors awaited tariff plans from US President Donald Trump that some fear could slow global growth and boost inflation.
The pan-European STOXX 600 index closed 0.5% lower, with Germany’s trade-sensitive DAX falling 0.7%.
Markets waited for details of Trump’s reciprocal tariffs on global trading partners, which will take effect immediately after they are announced at 2000 GMT.
European indexes have been volatile this week in anticipation of the announcement after Trump dampened hopes for more targeted levies. The STOXX 600 is hovering around two-month lows and is about 5.1% below its all-time high hit in March.
“There’s no doubt (tariffs) will impact risk appetite. The real question is where the pressure points are,” said Filip Carlsson, quantitative strategist at SEB.
A broad shift earlier this year into European equities was starting to fade, Carlsson added. French industry minister Marc Ferracci said Europe would respond to tariffs in a “proportionate manner”, while British finance minister Rachel Reeves said London would not rush to counter tariffs and risk undermining a possible trade deal.
European Central Bank head Christine Lagarde also warned that Trump’s tariffs would be negative “the world over”, though ECB policymaker Francois Villeroy de Galhau said they would not derail an ongoing decline in European inflation.
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