European stocks suffer worst session since April as Trump rejigs tariffs

The pan-European Stoxx 600 index provisionally closed 1.8% lower on Friday in its worst session since April, after the White House hit countries around the world with a range of new tariff rates.

While the European Union and the U.K. have already negotiated their own trade agreements, the news sent stocks lower around the world on global growth concerns. Stoxx 600 travel stocks closed 2.7% lower, while banks fell 2.9%.

"The fact Trump hasn't chickened out and pushed back the 1 August deadline to 1 September has soured the tone on the markets," said Russ Mould, investment director at AJ Bell.

"Investors in the healthcare sector got a dose of the blues after Trump wrote to various company bosses outlining how they should cut U.S. prescription drug prices or face a crackdown," he added.

 Corporate earnings season meanwhile continued Friday, with British Airways owned IAG closing nearly 2% lower despite reporting operating earnings jumped 35% year on year.

— Jenni Reid

European stock markets further extended losses in late deals, with the Stoxx 600 index down 2% at 3:05 p.m. in London.

While there was little certainty ahead of the White House's Aug. 1 trade deal deadline, U.S. President Donald Trump's modified tariff rates on dozens of countries with a new Aug. 7 deadline caught many investors off-guard.

The European sell-off was broad-based, with Stoxx 600 industrials down 2.8%, consumer cyclicals down 2.6% and technology down 2.3%. The Euro Stoxx Bank index tumbled 3.6%, putting it on-course for its worst session since April.

U.S. stocks were also down in morning trade following a disappointing jobs report.

— Jenni Reid

The Euro has strengthened against the U.S. dollar by 0.9% after a U.S. jobs data report showed growth was lower than expected in July and the unemployment rate ticked higher.

Nonfarm payroll growth totaled 73,000 for the month, above the June total of 14,000 but below even the meager Dow Jones estimate for a gain of 100,000. June and May totals were revised sharply lower, down by a combined 258,000 from previously announced levels, raising potential trouble signs for the U.S. labor market.

At the same time, the unemployment rate rose to 4.2%, in line with the forecast.

— Ganesh Rao, Jeff Cox

Losses on European stock markets have intensified about two hours into the trading session.

The Stoxx Europe 600 index is down 1.3% at 9.55 a.m. London time (4.55 a.m. ET). Regionally, the France's CAC 40 and DAX are both lower by 1.7%. Italy's MIB is off 1.8%.

— Ganesh Rao

Shares of British Airways-owner IAG dipped Friday morning as U.S. President Donald Trump's escalating tariff war threatened to weigh on travel demand in the second half of the year.

Shares were down 1.1% at 9:40 a.m. London time (4:40 a.m. ET).

IAG's stock opened up 3% after the airline group posted a 35% jump in second-quarter operating earnings, but dipped as macroeconomic concerns remained.

The company maintained its full-year guidance, citing confidence in the longer-term outlook, but it nevertheless pointed to the "ongoing uncertainty that may result from the geopolitical and macroeconomic backdrop."

— Karen Gilchrist

The Swiss franc has dropped by about 0.2% after U.S. President Donald Trump raised import duties on Switzerland to 39%.

— Ganesh Rao

European pharmaceutical stocks sold-off after President Donald Trump sent letters to 17 companies, including U.S. firms, in the sector.

Shares of Novo Nordisk listed on the Copenhagen exchange fell by around 4%, London-listed AstraZeneca was also lower by 3.9%. Meanwhile, GSK, Sanofi and Novartis were also in the red.

— Ganesh Rao

Swiss luxury stocks are expected to come under pressure when trading begins on Friday after U.S. President Donald Trump raised import duties on Switzerland to 39%.

Analysts at investment bank Jefferies said Richemont, Swatch Group and London-listed Watches of Switzerland could be affected.

"The overnight news that the US will impose an increased import tariff on Swiss imports of 39% could cause pain in CFR but especially in UHR and WOSG today," said Jefferies analysts led by James Grzinic in a note to clients.

The analysts said that since the tariffs begin on Aug. 7, there is still room to maneuver.

"Of course that is one week away, allowing for plenty of last minute tweaks and changes to be agreed," they added. "However, the direct impact of this extreme change (compared to investors likely assuming a 15% to follow given the recent EU deal) is meaningful in the watches vertical."

— Ganesh Rao

Euronext has topped quarterly earnings expectations, boosted by ongoing market volatility.

Revenue hit a fresh record and net profit rose by almost 30%.

The earnings report comes as the exchange operator launches a bid to buy the Athens Stock Exchange, with its offer valuing the Greek bourse at more than 400 million euros. 

— Katie Foley

International Airlines Group's profit soared past expectations in the second quarter as travelers piled into transatlantic routes at the start of the summer, despite concerns around President Donald Trump's tariff war.

The British Airways owner's operating earnings jumped 35% year on year to 1.68 billion euros ($1.92 billion) in the three months to June 30, ahead of the 1.44 billion forecast by analysts in an LSEG poll.

Quarterly revenues rose 6.8% to 8.86 billion euros, also ahead of the 8.7 billion euros expected.

The group, which also owns carriers Aer Lingus and Iberia, said demand was robust in its core markets of North Atlantic, Latin America and Europe, and that strength in its premium seats was "partially mitigating" some softness in U.S. economy travel.

"We continue to benefit from the trend of a structural shift in consumer spending towards travel. We remain focused on our market leading brands and core geographies, where we continue to see robust performance," CEO Luis Gallego said in a statement.

— Karen Gilchrist

Axa has backed its midterm targets despite a first half net profit miss, citing currency fluctuations.

Net income at the insurance and asset management giant dipped 2% on the year to 3.9 billion euros.

— Jonathan Stayton

Pharma giant Bayer has raised its 2025 sales forecast - anticipating annual sales of 46 to 48 billion euros, up 1 billion euros at both ends of the range.

It also announced it put aside 1.2 billion euros for ongoing litigation in the United States related to weed killer brand Roundup.

The group is set to report quarterly earnings on 6 August.

— Andreea Gheorghe

Daimler Truck has cut key forecasts, citing market weakness in North America.

The German firm now expects full year adjusted profit of between 3.6 and 4.1 billion euros ($4.7 billion), reflecting a drop of as much as 23 percent.

The group also lowered is sales volume outlook for the North American market.

The stock is down 4.7% in pre market.

— Domi Suskova, Ganesh Rao

Good morning from London, and welcome to CNBC's live blog covering all the action and business news in European financial markets on Friday.

Futures data points to losses at the open for European indexes, with London's FTSE 100 expected to open 0.2% lower, France's CAC 40 unchanged, Germany's DAX down 0.6%, and Italy's FTSE MIB 0.1% lower.

The Stoxx Europe 600 index and Euro Stoxx 50 index are expected to open 0.3% and 0.5% lower, respectively.

AXA, Daimler Truck, Melrose Industries, Saint-Gobain, Euronext, IAG, Pearson and Engie are among the heavyweight regional companies reporting their results today.

— Ganesh Rao