European stocks slide on Trump tariff fears, Le Pen ruling
President of the parliamentary group of the French far-right Rassemblement National (RN) party, Marine Le Pen leaves the headquarters of the French far-right Rassemblement National (RN) party, after a French court sentenced her to a five-year ban on running for office and a prison term in a trial on charges of embezzlement of European public funds, in Paris on Mar. 31, 2025. (AFP Photo)
European stock markets dipped on Monday, weighed down by growing political uncertainty in France—following a court ruling against far-right leader Marine Le Pen—and fresh concerns over potential U.S. tariffs under President Donald Trump.
The Paris Criminal Court sentenced Le Pen to four years in prison—two suspended—and imposed a five-year political ban, effective immediately, over corruption charges tied to her European Parliament activities. The court also fined her €100,000 ($108,000) and placed her under electronic supervision for two years. Eight former members of the European Parliament were also found guilty.
Le Pen, seen as French President Emmanuel Macron’s main political rival, had announced her candidacy for the 2027 presidential election. The verdict, delivered without waiting for the appeal process, triggered political unrest in France and increased the country’s risk premium amid ongoing budget deficit challenges.
European market shrunk, led by tech and auto stocks
Technology stocks led Monday’s downturn in European markets, with the EURO STOXX technology sector falling an average of 2.01% amid a broader risk-off sentiment. Europe’s banking index also felt the pressure, falling 1.96%, while the automotive sector posted the sharpest losses of the day, tumbling 2.6%.
The broader pan-European Stoxx 600 index fell by 1.51%, shedding 8.18 points to close at 533.93, reflecting widespread losses across key sectors and economies.
Among individual country benchmarks, Germany’s DAX 40 dropped 1.33%, or 298.03 points, ending the session at 22,163.49. In London, the FTSE 100 slipped 0.88%, closing at 8,582.81, down 76.04 points. France’s CAC 40 took a heavier hit, tumbling 1.58% to 7,790.71, a loss of 125.37 points, as political uncertainty weighed on investor sentiment. Italy’s FTSE MIB was the worst performer among major indexes, falling 1.77% to 38,051.99, down 687.31 points.
Amid the mounting market instability and fears of a global trade slowdown, investors turned to safe-haven assets. Gold prices soared past the $3,100 threshold for the first time, reaching a record high of $3,127 per ounce. The precious metal has gained approximately 20% since the beginning of the year, when it traded at around $2,620.
The euro also showed signs of weakness against the U.S. dollar, with the EUR/USD exchange rate dipping 0.12% to 1.081 as of 1800 GMT, reflecting investor caution in the face of geopolitical and economic uncertainty.
