Europe close: Stocks lower as investors gird for US tariffs

(Sharecast News) - European shares fell on Friday as traders braced themselves for wide-ranging US tariffs which take effect next week, while gold hit fresh highs with investors looking for safe havens amid the erratic policymaking of President Donald Trump.

Slightly worse-than-expected readings for US inflation, personal consumption and consumer confidence also acted as a drag.

The pan-regional Stoxx 600 index was down 0.77% at 542.10. Germany's DAX was off 0.96% at 22,461.52 in response to news on Thursday that US President Donald Trump would slap 25% levies on vehicle and parts imports as well. France's CAC 40 was 0.93% lower.

Auto shares tumbled around the world after the announcement on fears the move would disrupt global supply chains and spark inflation as the cost of vehicles increased.

"Gold has been on another glittering run upwards as investors seek out safe havens for their money. The spike in prices to fresh record levels comes as the world braces for another round of US tariffs, and geopolitical uncertainty swirls," said Hargreaves Lansdown analyst Susannah Streeter.

"The price of gold has also been helped by buying from central banks, particularly by China. Part of the appeal of gold is as a hedge against inflation, which is staying stubborn in some economies amid concerns US trade policy could push up consumer prices further."

In European economic news, consumer confidence in Germany has stabilised at a low level as sentiment was supported by the recent elections, though rising preferences to put money away still indicate a cautious attitude.

GfK's first survey since Germany's parliamentary elections, the forward-looking consumer climate index, inched higher to -24.5 for April from -24.6 in March. This missed the consensus forecast of -23.0.

Meanwhile, the UK economy grew more strongly than initially thought last year, official data showed, as the Office for National Statistics revised its estimate for real annual GDP in 2024 to 1.1% from 0.9%.

In equity news, Ubisoft shares gave up the early sharp gains following the company's announcement that it was creating a new gaming subsidiary with Chinese technology giant Tencent and investing �1.16bn into the unit.