Europe shares soil to the lowest level in a year amid the pancake

European stocks have dropped at the lowest level since Monday below the pressure of customs duties issued by US President Donald Trump. The Stoxx Europe 600 %fell 4.5 %at the closure in London, the lowest level since the end of January 2024, after falling 6.5 %earlier. The “DAX” index fell by 4.2%, compensating some of its previous decline by 10%. The shares of the defense sector, which was one of the best achievement sectors this year, have the liquidity collection at the top of the sale of winning supplies. All the twenty sectors also withdrew on the “Stoxx 600” index, while bank shares, energy companies and insurance companies have recorded a number of the biggest declines. “There is a general sense of panic. All stocks decrease, even the shares of good businesses that are likely to achieve relatively well,” says Daniel Murray, CEO of EFG aset Management, based in Zurich. The “Stoxx 600” index declined on Friday, which has registered the biggest weekly losses since the outbreak of the Corona pandemic, which asked the market to the correction area as a result of anxiety that the rising trade war negatively affects economic growth and reduces consumer demand. April was a sudden shift after the wave of European shares during the first quarter of the year thanks to optimism that public financial reforms in Germany will support economic growth. The poor investment positioning, declining assessments and low interest rates are one of the factors that helps the region perform at the S&P 500 index at all on a quarterly excel. However, the decisions of the customs definition issued by Trump were more seriously than expectations, which led investors to a mass escape from shares around the world. The S&P 500 index recorded its biggest decline in two days since March 2020, as the market value fell by more than $ 5 billion to the heavy sale wave. The Nasdaq 100 index (Nasdaq 100) has entered the falling market. Europe’s response to the fees awaits the increasing recommendations of strategic analysts for investors to avoid shares of economically sensitive sectors, such as energy, and instead they are preferred to buy large quantities of the shares of the most stable sectors, such as communication and facilities. The analysts of “Morgan Stanley” indicated last week that the blur due to customs duties will push the profits, even if negotiations will eventually lead to the reduction of customs rates initially introduced. This is due to the postponement of investment decisions, employment, integration and acquisitions and slowdowns. Investors will also monitor the reaction of the European Union to customs duties at the beginning of the week. The financial ministers of Italy and Spain warned to respond too much to customs duties, while their French counterpart indicated that the federation’s response could include the organizational restrictions on the use of major US technology companies.