European Stocks Dip as U.S.-EU Trade Talks Heat Up

(MENAFN) European stock markets ended Monday on a downbeat note, with Italy being the only exception, as investors remained fixated on the ongoing US-EU trade talks.

The pan-European Stoxx Europe 600 index dropped by 0.42%, or 2.26 points, closing at 541.37.
Germany’s DAX 40 shed 0.51%, finishing at 23,909.61 points, while the FTSE 100 in the UK dropped 0.43%, ending at 8,760.96. France’s CAC 40 fell by 0.33%, settling at 7,665.91 points.

However, the FTSE MIB 30 in Italy defied the trend, inching up 0.13% to 39,792.22 points.

In company-specific news, Bayer AG, the German pharmaceutical and chemical giant, saw its stock tumble by more than 5.3% following news related to its ongoing glyphosate litigation in the US.

Trade negotiations between the US and the EU continue to dominate market sentiment, with the EU pushing for a more favorable deal ahead of the looming July 9 tariff deadline. Recent reports from European press outlets indicated that a deal could potentially be struck before this crucial date to prevent a damaging escalation in tariffs. Meanwhile, France expressed a preference for a well-negotiated agreement, even if it takes longer, over a poor deal rushed through by the deadline.

On Thursday, German Chancellor Friedrich Merz emphasized the need for a "quick and simple" trade deal with the US, warning against the dangers of a "slow and complicated" process as the tariff deadline approaches.

In economic news, Germany’s annual inflation rate eased to 2% in June, down from 2.1% in May.

The European Central Bank (ECB) also made headlines, unveiling a shift in its strategy to combat persistent inflation fluctuations. While maintaining its 2% inflation target, the ECB has updated its five-year policy framework, committing to respond robustly to both high and low inflation conditions. The ECB emphasized that it will adapt its tools to meet inflation challenges more decisively.

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