Finance

Euro zone equity volatility jumps to seven-month high on tariff jitters

Published by Global Banking & Finance Review

Posted on March 11, 2025

1 min read

· Last updated: January 24, 2026

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Euro zone equity volatility jumps to seven-month high on tariff jitters
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MILAN (Reuters) - A gauge of euro zone equity volatility surged to a fresh seven-month high and European stocks fell further on Tuesday after the latest tariff news underscored concerns over growing

Euro Zone Stock Volatility Hits Seven-Month Peak Amid Tariff Concerns

MILAN (Reuters) - A gauge of euro zone equity volatility surged to a fresh seven-month high and European stocks fell further on Tuesday after the latest tariff news underscored concerns over growing trade tensions.

Trump on Tuesday doubled his planned tariff on all steel and aluminum products from Canada, and threatened to "substantially increase" tariffs on cars coming into the United States.

The euro STOXX equity volatility index spiked to its highest since early August on the news and was last up 1 point at 24.8.

European shares extended their drop, with the region-wide STOXX 600 down 1.7% to near five-week lows, and auto stocks down 2.6%.

(Reporting by Danilo Masoni, editing by Alun John)

Key Takeaways

  • Euro zone equity volatility reached a seven-month high.
  • European stocks fell due to new tariff announcements.
  • Trump increased tariffs on Canadian steel and aluminum.
  • The euro STOXX volatility index spiked significantly.
  • Auto stocks led the decline in European markets.

Frequently Asked Questions

What caused the surge in euro zone equity volatility?
The surge in euro zone equity volatility was triggered by the latest tariff news, particularly President Trump's announcement to double tariffs on steel and aluminum products from Canada.
How did European stocks react to the tariff news?
European stocks fell further, with the region-wide STOXX 600 index dropping 1.7% to near five-week lows, while auto stocks experienced a decline of 2.6%.
What is the current status of the euro STOXX equity volatility index?
The euro STOXX equity volatility index spiked to its highest level since early August, reaching a value of 24.8.

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