Euro Zone's Economic Jitters Amid U.S. Trade Tensions

Euro zone shares faced declines amid rising concerns over U.S. trade policies under President Trump. The STOXX 600 index dropped, while Germany's DAX and the UK’s FTSE 100 showed mixed performances. Economic uncertainties persist with looming tariffs, impacting investor sentiment and market stability.

Euro zone shares dipped on Friday following a week of escalating anxiety over the global economic impact of a trade war initiated by U.S. President Donald Trump.

The pan-European STOXX 600 index decreased by 0.2% by 0935 GMT, after consecutive declines, pointing to a weekly loss of 0.6%. Euro zone blue-chip shares saw a steeper fall of 0.5%. Germany's DAX index, sensitive to trade fluctuations, dropped by 0.6%, whereas the UK's FTSE 100 managed a slight gain of 0.1%.

Ubisoft's shares surged 8.9% following their announcement of a new subsidiary involving a significant investment from China's Tencent. European shares slid to two-week lows after Trump's announcement of new import tariffs heightened market tensions ahead of a deadline for reciprocal trade measures. Concerns over the broader economic effects and U.S. inflation are growing. Investors anticipate U.S. personal consumption expenditures data to inform future rate cut prospects.

(With inputs from agencies.)