European stock markets experienced a downturn on April 22, 2025, influenced by escalating tensions between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell. Trump's renewed criticism of Powell and calls for immediate interest rate cuts have raised concerns about the Federal Reserve's independence, leading to increased market volatility.​

The pan-European STOXX 600 index declined by 0.6%, with notable losses in sectors such as pharmaceuticals, where Danish company Novo Nordisk saw a 7.9% drop following competitive developments from U.S. firm Eli Lilly. Investor sentiment was further dampened by projections indicating a 3% decline in first-quarter profits for European companies, surpassing earlier estimates.​

In contrast, the UK's FTSE 100 index rose by 0.3%, buoyed by comments from Bank of England policymaker Megan Greene. Greene suggested that the UK's decision not to impose reciprocal tariffs could attract more affordable goods from Asia and Europe, potentially leading to lower inflation.​

Global markets are now closely monitoring upcoming economic indicators, including the eurozone consumer confidence report and PMI surveys, to assess the broader economic outlook amid ongoing geopolitical tensions and policy uncertainties.