European Shares Tumble Amid Tariff Uncertainty

European shares hit a two-month low as investors reacted to U.S. President Donald Trump's tariff comments. The STOXX 600 index saw significant declines, with volatility rising and investors turning to safer assets like gold. Concerns over reciprocal tariffs and a global economic slowdown pressured markets, influencing GDP forecasts.

European shares dropped to a two-month low on Monday, influenced by investor anxiety following U.S. President Donald Trump's announcement of potential tariffs affecting all countries. The pan-European STOXX 600 index suffered a 1.5% drop, marking its fourth consecutive session of losses and its largest daily decline in nearly three weeks.

Regional volatility spiked, with major bourses losing over 1% each as investors moved toward safe havens like gold and the Japanese yen. April 2 looms as a crucial date with possible reciprocal tariffs on U.S. trading partners, adding to market unease.

Investor sentiment remained cautious, despite Germany's consumer inflation data showing a slight ease. However, broader economic forecasts were adjusted, with Goldman Sachs predicting rate cuts for both the Federal Reserve and the European Central Bank amid increased tariff volatility.

(With inputs from agencies.)