Escalating levies imposed by the US have caused a broad European market slump, intensifying worries over a worldwide deceleration and prompting exporter concerns about further tit-for-tat actions.

European leaders are advancing plans to seize approximately €200bn in frozen funds, emphasising the need to uphold coordinated principles across allied nations and receiving backing from the PM.

Senior figures from two leading European nations are preparing a fresh diplomatic framework, seeking bolstered defence cooperation and transatlantic support following tense talks in Washington.

A highly anticipated White House meeting ended in a tense setback when the host cut it short, accusing the visiting leader of failing to adequately prepare for a breakthrough, leaving a notable resource agreement unsigned and prompting concerns about future cooperation.