European markets fall on tariff concerns

European stock markets are experiencing a decline due to the impact of new U.S. tariff plans on Canadian products. The Stoxx Europe 600 index fell by 0.7 percent to 549.4 points. Germany's DAX 40 index traded down 0.9 percent at 24,267 points, while the UK's FTSE 100 index dropped 0.2 percent to 8,959 points.

In Italy, the FTSE MIB 30 index decreased by 0.1 percent to 40,125 points, the IBEX 35 index in Spain fell by 0.5 percent to 14,068 points, and the CAC 40 index in France declined by 0.6 percent to 7,851 points.

U.S. President Donald Trump announced that a 35 percent tariff would be imposed on Canadian products starting August 1. While this decision has heightened concerns in Europe, analysts note that it has diminished the impact of positive news regarding the potential continuation of trade talks between the U.S. and Europe.

According to economic data released in the UK, Gross Domestic Product (GDP) decreased by 0.1 percent in May. Industrial production showed a monthly decline of 0.9 percent and an annual decline of 0.3 percent. The country's foreign trade deficit was recorded at 21.69 billion pounds.

UK Chancellor of the Exchequer Rachel Reeves may become a target of criticism due to the weak growth data. This situation could increase political uncertainty in the country. The possibility of the Bank of England (BoE) cutting interest rates is also strengthening in light of these developments.

The pound/dollar parity fell to the 1.3530 level. Analysts stated that the U.S. federal budget balance will be monitored later in the day and that the data flow in Europe is quiet.

News Source: 12punto