European Markets Steady Amid Trade Tensions and Economic Adjustments

European stocks remained stable after previous gains, as investors evaluated U.S. tariff threats that could spark a trade war. Key sectors like automobiles saw declines, while aerospace benefitted. Germany discussed major economic measures, with companies like Energiekontor and IG Group posting notable performances.

European shares remained largely unchanged on Thursday as investors took time to evaluate the consequences of President Donald Trump's potential tariffs, which threaten to escalate a trade war with the European Union.

The pan-European STOXX 600 index recorded a marginal drop of 0.06% at 0813 GMT, despite a 0.8% rise on Wednesday fueled by hopes for a ceasefire in Ukraine and favorable U.S. inflation data. Trump's new tariff threats, following the EU's retaliatory levies, raised concerns among investors.

Trade-sensitive sectors like the automobile industry suffered declines, while aerospace saw gains. As Germany debates a substantial economic package, Energiekontor and IG Group reported impressive financial performances, highlighting resilience in select markets.

(With inputs from agencies.)