07:38 AM EDT, 10/17/2025 (MT Newswires) -- European bourses tracked lower midday Friday as traders reacted to media reports of regional bank losses in the US, and escalating China-US trade tensions.

Bank stocks led broad market losses on continental exchanges, followed down by tech and oil shares. Food stocks bucked trends.

US President Donald Trump may impose new higher tariffs on Chinese imports to finance the Ukraine war effort, The Telegraph and other publications reported late Thursday.

Investors also eyed Wall Street futures flashing red, and lower closes overnight on Asian exchanges, including a 2.5% decline on the Hong Kong Hang Seng Index.

The pan-continental Stoxx Europe 600 Index was off 1.4% mid-session.

The Stoxx Europe 600 Technology Index was down 1.7%, and the Stoxx 600 Banks Index lost 2.7%.

The Stoxx Europe 600 Oil and Gas Index was off 1.7%, while the Stoxx 600 Europe Food and Beverage Index gained 0.4%.

The REITE, a European REIT index, fell 1.3%, while the Stoxx Europe 600 Retail Index was down 1.3%.

On the national market indexes, Germany's DAX was down 1.9%, and the FTSE 100 in London lost 1.1%. The CAC 40 in Paris was off 0.4%, and Spain's IBEX 35 eased 0.8%.

Yields on benchmark 10-year German bonds were steady, near 2.57%.

Front-month North Sea Brent crude-oil futures were down 0.2% at $60.94 a barrel.

The Euro Stoxx 50 volatility index was up 24.7% at 22.78, indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.