European stocks fear falling into a pullback zone! Trump's tariff storm triggers worst single-week performance since 2022.

Impacted by concerns over the impact of Trump's tariff policies on economic growth, European stock markets continue to decline, and are about to enter a technical correction zone. As of the time of writing, the Euro Stoxx 50 Index, the blue-chip benchmark for European stocks, has plummeted by over 4%, dropping more than 10% from its historical high in March. The Euro Stoxx 600 Index has wiped out its annual gains, and the Italian FTSE MIB Index also faces pressure for a correction. The banking and mining sectors are leading the market decline. The Stoxx 600 Banks Index fell by 7.5%, marking the largest drop since March 2022. Ulrich Urbahn, Head of Multi-Asset Strategy and Research at Berenberg Bank, stated, "Trump's new tariffs on the EU have sparked global concerns. Given that many systemic strategies currently have heavy exposure to European stocks, the market may face a larger scale sell-off." The Euro Stoxx 600 Index has posted a cumulative decline of 7% this week, making it the worst week since March 2022. On Thursday, US President Trump stated that he would consider reducing tariffs if other countries can offer "extraordinary" conditions. Investors are now turning their attention to the upcoming US non-farm payroll report and Fed Chair Powell's speech to assess the resilience of the US economy and the room for rate cuts by policymakers. According to a Bloomberg survey of economists, the number of new jobs added in the US may slow from 151,000 in February to 140,000 last month.