Europe close: Stocks end week on a down note after Beijing retaliates

(Sharecast News) - Most European bourses suffered moderate losses as China lifted tariffs on US imports to 125% at the end of a turbulent week, driven by President Donald Trump's erratic trade policies.

The pan-regional Stoxx 600 index was down 0.10% at 486.80 points. Germany's DAX fell 0.92% to 20,374.10 and France's CAC-40 dipped 0.30% to 7,104.80.

China said it was raising its tariffs on US products to 125% in the latest exchange of fire between the world's biggest economies. The Commerce Ministry announced the increase 84% again saying the country was ready to "fight to the end".

It added that "at the current tariff level, there is no market acceptance for US goods exported to China".

Markets had rebounded the day before, after Trump paused swingeing tariffs for 90 days, even as he increased levies on China to 145%.

The European Union, which had been planning retaliatory measures of its own, had on Thursday paused countermeasures for 90 days. "We want to give negotiations a chance," said European Commission President Ursula von der Leyen.

However, French President Emmanuel Macron on Friday warned that the temporary tariff suspension "sends out a signal and leaves the door open for talks. But this pause is a fragile one."

"This 90-day pause means 90 days of uncertainty for all our businesses, on both sides of the Atlantic and beyond."

In economic news, the UK economy grew faster than expected in February, as the services and manufacturing sectors picked up after recent slow activity, official figures show.

The Office for National Statistics said gross domestic product grew by 0.5%, compared with forecasts of just 0.1% growth.

In equity news, shares in Swedish industrial technology group Hexagon slumped after the company reported lower operating profit in the first quarter, hit by weaker than expected growth in its key North American Free Trade Agreement and China markets last month.