The looming threat of tariffs announced by Donald Trump sent shockwaves across global financial markets. Investors in Asia, caught off guard, quickly began selling, causing currencies and stocks to slump. Notably, the Mexican peso fell over 2%, and major Japanese automakers suffered significant losses.

European markets also showed signs of strain, with STOXX 50 futures pointing to further downturns, as traders anticipate potential repercussions from Trump’s aggressive trade rhetoric. This episode has revived memories of market unpredictability from Trump’s previous presidency due to his spontaneous social media announcements.

As European traders brace for potential repercussions, the economic calendar remains sparse. However, key addresses from the Bank of England and European Central Bank officials coupled with forthcoming Fed minutes are expected to provide critical insights into ongoing economic policies.

(With inputs from agencies.)