European stock markets tumbled Friday following the European Central Bank's latest rate cut and concerns over U.S. trade policy shifts. At 09:03 GMT, the Stoxx 600 fell 0.9%, Germany’s DAX dropped 1.5%, France’s CAC 40 slipped 1.0%, and the UK’s FTSE 100 dipped 0.4%.
The ECB cut interest rates for the sixth time since June, signaling that monetary policy is becoming less restrictive as inflation nears its 2% target. However, ECB President Christine Lagarde remained cautious, stating future moves could include further cuts or a pause. Nomura economists noted a slightly hawkish tone, now expecting just one rate cut this year instead of two.
Adding to economic concerns, German industrial orders fell 7% in January, reversing December’s surge driven by increased demand for aircraft, ships, and military vehicles. Meanwhile, Germany's potential new government coalition plans to reform borrowing rules to increase defense and infrastructure spending.
Investors also reacted to fluctuating U.S. trade policies. President Donald Trump initially imposed 25% tariffs on Canadian and Mexican goods while raising Chinese tariffs to 20%. However, he later delayed the North American tariffs until April 2, adding to market volatility. Traders are now eyeing U.S. jobs data and a speech from Federal Reserve Chair Jerome Powell for further policy direction.
Oil prices rose slightly Friday, with Brent at $69.63 and WTI at $66.48 per barrel. Despite this, both benchmarks are on track for their biggest weekly losses since October, dropping nearly 5% due to uncertainty around U.S. trade policy and increased production from major oil producers.
Market sentiment remains fragile as global economic uncertainty, trade tensions, and shifting monetary policies continue to impact investor confidence.


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