European stocks declined on Friday, signaling a significant weekly drop, as investors grappled with the possibility of a global recession fueled by U.S. President Donald Trump's announcement of substantial tariffs on trading partners. The pan-European STOXX index fell by 0.9% at 0710 GMT, marking its most substantial weekly decline since June 2022 at 4.4%.

The implementation of a 20% U.S. import tariff rate on Europe led traders to speculate on potential interest rate cuts by the European Central Bank to bolster economic growth. Particularly sensitive to economic conditions, European banks experienced the most significant losses among sectors, dropping by 3.8%.

Market watchers are eagerly awaiting the critical March U.S. jobs report to be released at 1230 GMT in order to assess the state of the world's largest economy following the recent tariffs that have heightened concerns about a recession. Recent data indicated that German industrial orders remained stagnant in February, with a slight upward revision in January, pointing towards a potential stabilization in Germany's industrial sector, although a slow recovery is anticipated.

In terms of individual stocks, Gerresheimer saw a 6% decrease after reports suggested that KKR had backed out of discussions with a private equity consortium regarding the acquisition of the German speciality packaging maker.