European stocks tumble with EU tariff letter expected from White House

European stock markets have given up some of their recent gains by tumbling on the last trading day of the week, while waiting on an expected EU tariff letter from White House.

The Stoxx Europe 600 index was down 1.1%. Germany’s DAX and France’s CAC 40 were both lower by around 0.9%. The U.K.’s FTSE 100 lost 0.4% of its value.

Some of the positive stock market moves this week came in the wake of the release of the Federal Reserve’s June meeting minutes, which showed willingness by a majority of policymakers to cut interest rates this year.

But according to JPMorgan Chase CEO Jamie Dimon, there remains a greater risk that interest rates will instead need to be hiked again than most people believe.

“The market is pricing a 20% chance [of a rate hike], I would price in a 40-50% chance. I would put that as a cause for concern,” Dimon told an event at Ireland’s Department of Foreign Affairs on Thursday, arguing that there is a significant possibility of inflation becoming problematic again for the U.S.

Market optimism that drove record highs for U.K. and Wall Street stocks on Thursday showed signs of fading, with the pan-European Stoxx 600 index down nearly 1% at midday in London, and the Dow Jones Industrial Average futures falling 0.7%.

Gains this week have come despite a slew of tariff announcements that might previously have shaken markets, including 25% duties on trading partners including Japan, a 50% rate on Brazil, and a higher-than-expected 50% rate on all copper imports.