European stocks tumbled and currencies slid against the dollar on Tuesday as investors fretted over the impact of a more hawkish approach to China under a second Trump presidency. The benchmark Stoxx Europe 600 index lost 2 per cent, its worst one-day performance since the market rout in early August. Paris’s Cac 40 finished down 2.7 per cent, while Frankfurt’s Dax shed 2.1 per cent. The US dollar extended its gains following last week’s presidential election, with the dollar index up 0.
Copper, viewed as an indicator of global economic health, fell nearly 2 per cent in London as traders feared commodities would bear the brunt of possible US tariffs. Palladium, used in car catalytic converters, dropped 4.1 per cent. Kelly Ke-Shu Chen, an analyst with DNB Markets, said Rubio’s stance would undercut prospects of “any form of dialogue” between the US and China.