Europe close: Fresh US trade tariffs, weak jobs data knock stocks lower

(Sharecast News) - European shares were a sea of red at the end of the week after US President Donald Trump announced overnight the latest raft of tariffs in his trade war with the rest of the world.

Stocks pushed lower still in afternoon trading following the release of weaker-than-expected US non-farm payrolls figures for July, together with very sharp revisions for the prior two months.

The pan-regional Stoxx 600 index was down 1.89% at 535.79, with all major bourses following suit. Germany's DAX fell 2.66% and France's CAC 40 declined by 2.91%.

Overnight, Trump ordered a 10% tariff on all countries except for a random list of 92 nations that would be subjected to higher levies - including a 39% hit on Switzerland. Canada was slapped with a 35% rate on goods not covered by the trade deal with the US and Mexico in a political retaliation for Ottawa's decision to recognise a Palestinian state.

However, in line with his recent actions, Trump said the measures would be delayed by a week, once again extending a deadline threat. Mexico was given another 90-day extension to come up with a deal.

In specific equity news, Engie shares slumped 2% as the French energy utility posted lower half-year earnings.

Melrose Industries jumped 5% as the defence company beat profit forecasts on strong demand.

British Airways owner IAG gave up early gains, retreating roughly 2% after the company said it expected a slight rise in costs linked to air traffic control issues.

Pharma stocks were lower after Trump sent letters to 17 major drugs companies outlining how they should slash US prescription drug prices. The news saw shares in Novo Nordisk plumb an almost four-year low.