Tariff Tremors: European Shares Tumble Amid U.S. Trade Threats

European shares faced their worst week in months due to U.S. President-elect Donald Trump's tariff threats towards the EU. The STOXX 600 index dropped significantly, with major sectors like banks and mining leading losses. UK's FTSE 100 fared slightly better as investors awaited crucial U.S. inflation data.

European shares were on track to record their worst week in three months as investors were rattled by U.S. President-elect Donald Trump's comments on Friday, threatening tariffs on the European Union.

The pan-European STOXX 600 index experienced a decline of 0.8% by 0812 GMT, reaching its lowest levels in nearly a month and set for its steepest weekly fall since early September. Trump insisted the EU purchase more U.S. oil and gas to address its substantial trade deficit or face punitive tariffs.

Every major sector in Europe was dragged down, particularly banks and miners. Germany's DAX and France's CAC 40 indices each slid by about 1%. Meanwhile, Britain's FTSE 100 endured a modest 0.3% drop following data revealing a tepid 0.2% rise in British retail sales in November, further indicating economic stagnation. Investors keenly await U.S. inflation data due later, anticipating insights into the pace of future rate cuts.

(With inputs from agencies.)