European Stocks Close Notably Lower On Growth Worries

(RTTNews) - European stocks closed weak on Tuesday with many markets dropping to multi-week lows, as concerns about economic growth in the U.S. and other major markets due to the trade dispute following the Trump Administration's decision to impose fresh tariffs on goods imported into American from several countries.

The U.S. President announced new tariffs on Canadian steel and aluminum imports, saying that the 50% tariff is in retaliation for Ontario imposing a 25% surcharge on electricity exported to U.S. states. Trump also threatened to impose higher tariffs on Canadian car imports.

Meanwhile, there is some uncertainty about the proposed debt-finance package, as Germany's Green party rejected it, potentially imperiling the flagship policy of chancellor-in-waiting Friedrich Merz.

Merz, who is assembling a coalition to succeed Chancellor Olaf Scholz after winning last month's election, needs Green support to secure a two-thirds majority required for a constitutional amendment to ease borrowing restrictions.

Most of the major markets in the region started off on a positive note, but retreated soon and then struggled for support till the end of the day's session.

The pan European Stoxx 600 fell 1.7%. The U.K.'s FTSE 100 dropped 1.21%, Germany's DAX closed down 1.29% and France's CAC 40 settled lower by 1.31%. Switzerland's SMI tumbled 2.47%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Iceland, Ireland, Netherlands, Norway, Spain and Sweden ended with sharp to moderate losses.

Greece, Poland and Russia closed modestly lower. Turkiye ended on a positive note, while Portugal ended flat.

In the UK market, IAG closed more than 6% down. Rentokil Initial, Intertek Group, Diploma, Spirax Group, IHG, Vodafone Group, Halma, Standard Chartered, Schroders, JD Sports Fashion and AstraZeneca lost 3 to 5%.

Lloyds Banking Group, BT Group, GSK, Kingfisher, Diageo, Auto Trader Group, Entain, Unilever, Croda International, Tesco and Experian also ended sharply lower.

Persimmon rallied 5.5%. Rolls-Royce Holdings, Barratt Redrow, Fresnillo, Berkeley Group Holdings, Severn Trent, SSE and Segro gained 1 to 2%.

In the German market, Henkel tanked more than 10% after giving a soft guidance for 2025 organic sales growth.

Puma, Daimler Truck Holding, BASF and Zalando closed down 3.3 to 5.5%.

Deutsche Telekom, Commerzbank, Fresenius, Adidas, Symrise, Porsche, Mercedes-Benz, Deutsche Post, BMW, Siemens, Deutsche Bank, SAP, Volkswagen, Heidelberg Materials, Brenntag, Allianz, Continental and Siemens Healthineers lost 1.2 to 3%.

HelloFresh shares slumped nearly 19%. The German meal kit company said it expects sales to fall this year as it prioritizes high value customers over volume.

Siemes Energy climbed more than 5%. Rheinmetall and MTU Aero Engines both gained more than 3%.

In the French market, Stellantis closed more than 5% down. Accor, Capgemini, Eurofins Scientific, Dassault Systemes, Essilor, Pernod Ricard, Air Liquide, Teleperformance, L'Oreal, STMicroElectronics, Carrefour, Michelin, Edenred, BNP Paribas and Sanofi lost 2 to 4.1%.

Data from the British Retail Consortium revealed that UK retail sales growth eased in February on muted non-food sales. Retail sales increased 1.1% on a yearly basis in February, which was much slower than the 2.6% in January.

Linda Ellett, UK Head of Consumer, Retail & Leisure at KPMG said consumers remain cautious with their spending and many are continuing to prioritize saving, travel and experiences.

Further, nervousness about the economy is deferring other big ticket purchasing, but occasions and offers are still tempting shoppers into some impulsive spending, said Ellett.