European shares fall as uncertainty over tariffs deepens

European shares fell on Friday as repeated shifts in U.S. trade policy throughout the week spurred risk aversion, with the focus remaining on key U.S. jobs data due later in the day.

The pan-European STOXX 600 index was down 0.7 percent by 0817 GMT, on track to end a 10-week winning streak.

The index closed flat on Thursday as the European Central Bank’s interest rate cut helped offset pressure from rising long-term bond yields, according to Reuters.

U.S. President Donald Trump on Thursday suspended the 25 percent tariffs he imposed this week on most goods from Canada and Mexico, the latest development in a shifting trade policy that has sent markets into turmoil.

Luxury stocks weighed heavily on the main index, with Richemont losing 4.1 percent, Burberry losing 4 percent and Kering losing 2.6 percent.

Retail shares also fell 1.3%, pressured by a 3.8% drop in online retailer Zalando.

But electricity grid operator Elia Group jumped 17% to the top of the STOXX 600 after it reported full-year results.

Attention is now focused on the US non-farm payrolls report and a speech from Federal Reserve Chairman Jerome Powell, which could provide clues on the path of monetary policy in the world’s largest economy.