Recent events in the global economy have significantly impacted the European market. European stock futures have dropped following the largest weekly decline since March 2020. The main catalyst for these changes is Donald Trump's announcement regarding new tariffs, which has raised concerns about economic growth in the region and consumer demand.
The 3.1% drop in the STOXX 600 index last Friday has become a clear indication that the market is entering a corrective phase. After reaching a record high on March 3, the index has fallen by over 10% from its peak, signaling drastic changes in market dynamics. This decline follows a 2.6% drop on the previous day, which came on the heels of US President Donald Trump's announcement of extensive tariff measures. These new tariffs sent shockwaves through global stock markets, adding further pressure on the STOXX 600 and emphasizing the vulnerability of markets to external economic and political factors.