European Shares Broadly Lower After China's Trade Response, DAX Falls by 1.57%
Losses on European exchanges increased today after China unveiled new tariffs against US products, increasing concerns of an escalating trade standoff between the two countries. The European tech sector posted the worst performance with a fall of 1.6%, while cyclical stocks such as financials and industrials also weighed heavily. The DAX index is trading at 11.813 points, down 1.57%.
Inflation in the Eurozone rose in March after three months of decline. According to a flash estimate data from the Eurostat, the bloc’s consumer price index rose by 1.4% in March from the same month a year earlier, and up from 1.1% in February and in line with forecasts. Core inflation, which strips out volatile items such as energy and food, rose by an annual rate of 1.0%, unchanged from the previous month. Economists had expected core inflation to tick up to 1.1%. Both measures are below the European Central Bank’s inflation target of close to but just under 2%. Eurozone unemployment ticked lower to 8.5%, matching the forecast.
China announced additional 25% tariffs for 106 products imported from the US, which could increase global concerns about the trade war between the world's largest economies. New tariffs are aimed at US products, including soybeans, cars, whiskey and chemicals.