European stocks experienced a significant sell-off by hedge funds in March and April, marking the largest volume in a decade, according to a report by Goldman Sachs (NYSE:GS).

According to bank strategists, this trend was driven by concerns over the tariffs proposed by President Trump and a strong euro, which could potentially impact Europe's export-oriented economy.

The STOXX 600 index, which includes companies that generate 60% of their revenues internationally, was the subject of a significant portion of these sales. The U.S. market, in particular, accounts for nearly half of these foreign revenues.

Over the past two months, hedge funds have shifted their strategies from long positions, anticipating stock growth, to short trades, expecting a decline in European assets.

During March and April, traders were net sellers of European stocks for two-thirds of the trading days. The sell-off was particularly concentrated in individual stocks sensitive to tariffs, especially in the automotive and luxury goods industries.