European stocks fell on Friday, suffering their third week of losses this month, as investors braced for U.S. tariff announcements in coming days.

The Stoxx Europe 600 Index was down 0.8% by the close in London, ending the week with a loss of 1.4%. Sectors considered bond proxies, such as real estate and utilities, outperformed as German bunds held onto gains after inflation in France and Spain undershot expectations, supporting calls for more interest-rate cuts by the European Central Bank. Cyclical shares were the biggest drag with travel stocks, miners, banks and industrials among the worst performers.

Investors have shown less risk appetite after Donald Trump announced a 25% import tariff on autos this week. The U.S. President is expected to announce a further range of measures on April 2.

“The auto tariffs have made investors recognize that, while maybe not as broad, the tariff measures on April 2 may be larger than previously expected,” said Norman Villamin, group chief strategist at Union Bancaire Privée.

Among individual movers, Ubisoft Entertainment shares erased their gains after jumping as much as 12%, as the video-game maker said it would carve out a unit, with Tencent Holdings Ltd. set to invest €1.16 billion for a stake in it. Sports apparel maker Puma SE slid 4.4% after competitor Lululemon Athletica Inc.’s outlook noted concerns about consumer spending. UK grocery stocks outperformed following a surprise increase in sales data.

Still, European stocks are headed for their biggest quarterly outperformance in dollar terms versus the U.S. on record as tariff concerns were offset by Germany’s fiscal spending plan, lower interest rates in the euro zone, and cheaper, more enticing valuations. The DAX Index has also rallied, and was on pace for its best first quarter in a decade.

European stock funds had a seventh consecutive week of inflows, drawing $3.1 billion, while US equity funds suffered their biggest weekly outflow since the start of the year, according to Bank of America Corp. citing EPFR Global data.

“We would tend to wait for an opportunity to reinvest further in European equities given the current levels,” said Fabien Benchetrit, head of multi asset investment for France at BNP Paribas AM.