European stocks edged higher on Friday morning as markets tried to recover from a tumultuous week marked by shifting tariff announcements. Despite slight gains, concerns over an escalating trade war between the US and China continue to weigh on investor sentiment.
The UK’s FTSE 100 index rose by 0.5% at around 9:45 CEST, while Germany’s DAX index gained 0.6%. France’s CAC 40 index climbed 0.8%, and the STOXX 600 index increased by 0.4%.
Among the gainers were British American Tobacco, HSBC, and Barclays, while Getinge B and Zurich Insurance Group were among the top losers. Despite these small gains, market anxieties remained high, particularly following US President Donald Trump’s recent announcement of a 125% tariff on China, on top of existing 20% duties, continuing to escalate tensions. This announcement came even after Trump introduced a 90-day pause on “reciprocal” tariffs.
Investor concerns also extended to Asia-Pacific markets on Thursday, with the region’s stocks underperforming. Japan’s Nikkei 225 dropped nearly 3% to close at 33,585.58, while China’s Shanghai Composite Index ended the day 0.5% higher at 3,238.23. Hong Kong’s Hang Seng index showed gains of 1.6% by 9:45am CEST.
Meanwhile, Australia’s S&P/ASX 200 fell by 0.8%, and South Korea’s Kospi declined 0.5%. US stocks closed in the red on Thursday, with the S&P 500 down 3.5%, the Nasdaq 100 losing 4.2%, and the Dow Jones Industrial Average dropping 2.5%. Companies such as CarMax, United Airlines, Microchip, and Monolithic experienced the biggest losses, while Boeing, General Motors, and Chevron saw smaller declines.
