Doha: European stocks fell on Wednesday as the US tariffs took effect, exacerbating concerns about the economic damage caused by the trade war, which has even extended to the bond market. The STOXX Europe 600 index fell 2.5%, erasing the previous session's gains. The leading stock market index in Germany, highly influenced by trade, lost 2.1%.

According to Qatar News Agency, energy stocks tumbled 3.8% as oil prices fell to their lowest levels in four years, while mining stocks fell 4% after a massive 104% tax was imposed on China, the world's largest metals exporter. Bank stocks, which are sensitive to interest rate movements, fell 2.8% amid consensus of traders' expectations that the European Central Bank will cut interest rates next week to support the slumping economy. Investors are reducing their holdings of US government bonds, traditionally viewed as safe assets, and shifting to cash.