European markets started the week on a negative note, with President Trump expressing his determination to reduce the US trade deficits, especially with China, while denying any intention to cause market instability.

By 10:39 CET, various European indices were down, with the Euro STOXX 50 falling by 6%, the STOXX 600 by 5.7%, CAC 40 in France by 5.11% at 6,904.64 points, DAX in Germany by 5.63% at 19,486.93 points, and FTSE 100 by 4.74% to 7,668.92 points. FTSE MIB in Italy dropped 6.5%, and Spain's IBEX 35 lost 6%.

Despite denying responsibility for the market downturn, Trump reiterated his aim to eliminate the US trade deficit.

Last Friday, China responded with retaliatory tariffs, imposing a 34% import tax on all US goods, leading to a significant escalation in the global trade conflict.

Additionally, Trump requested financial compensation from Europe, stating that negotiations would only proceed if Europe paid substantial amounts annually, not just for the present but also for past years.

Zaye Capital Markets described the situation as a "bloodbath" with the European markets experiencing significant declines, indicating no safe investment haven amid an intense market downturn with uncertain recovery prospects.