By Michael Msika, Bloomberg markets live reporter and strategist
So much for expectations that European stocks could dodge tariff turmoil. One thing’s for sure: it’s going to be a bumpy ride for markets this year and even a supportive central bank may not be enough to smooth things out.
Fear, uncertainty and doubt have been lurking just behind the market’s bullish appearance. The DeepSeek episode turned out to be just the first warning of returning volatility. With tariffs now in the mix, the euro has taken a battering and investors are reaching for hedges and avoiding anything that looks vulnerable to US trade policy. A deal to delay the implementation of tariffs to Mexico and Canada offers some relief, but China has started to retaliate.
