European shares fall amid global trade, German Government stability worries

European shares are lower Thursday as ongoing US tariff impositions and worries over the stability of the German government weigh on investor sentiment.

European shares fall amid global trade, German Government stability worries

European shares are lower Thursday afternoon as traders remain concerned over the possible long-term economic impact of the US trade tariff plans and retaliatory behaviour from other countries. An EU meeting in which the German coalition has set a short deadline to solve migration problems, is adding to weakness.

By 1350 BST, the EUROSTOXX 600 was down 0.99%, while the EUROSTOXX 50 was off 0.86%. Meanwhile, the regional bourses are also negative. The German DAX lost 1.36%, the French CAC as 0.75% in negative territory and the Spanish IBEX fell 0.37%.

US trade worries continue to weigh

The US Trump administration remains set on a course to invoke further import tariffs with its trading partners. This is something that is weighing on the minds of investors as they consider the implications of that behaviour and the resulting retaliatory tariffs from other countries, on the future global economy.

Thursday it was the tech sector’s turn to feel the effects of those worries, particularly amid the possibility that Chinese firms may have much less opportunity to invest in US tech businesses.

European traded tech stocks that lost ground included:

  • Infineon shares were down 4.41% at €21.23.
  • ASML shares lost 3.25% to trade at €165.20.
  • Nokia shares fell 2.25% to €4.87.

In addition to that, car stocks also remain in the red as that’s another industry that could be hurt in the longer term by higher import tariffs.

Daimler shares were 1.06% lower at €55.04, while BMW shares were 1.14% in the red at €77.68.

German migration debate

Adding to investor concerns is an EU meeting where the German Chancellor Angela Merkel’s coalition partners have set a deadline for this Sunday for a final agreement on the region’s migration problem.

If an agreement that proves unsatisfactory to them is reached, it could threaten the stability of the German government, scant weeks after it was finally formed.

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