Europe: Shares fall on healthcare, financials drag; focus on US-EU trade deal
The pan-European Stoxx 600 index closed down 0.37 per cent at 544.95. Most regional indexes declined, with Spain's IBEX falling 1.1 per cent.
On Monday, the European Union accused the US of resisting a trade deal and warned of countermeasures if no agreement is reached.
US President Donald Trump, meanwhile, said he was open to talks, adding that EU officials would visit the US for trade negotiations.
'What we're seeing here is just a reflection of uncertainty surrounding EU-US trade talks,' said Fiona Cincotta, senior market analyst at City Index.
'That radio silence is just unnerving investors. They want to know that an improvement can be made on (the) 30 per cent (tariff rate).'
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The ZEW economic research institute said German investor morale rose more than expected in July, but economists warned that optimism would vanish without an EU-US trade deal.
Across the Atlantic, big banks kicked off the earnings season, with investors closely assessing outlooks and tariff-related uncertainties. JPMorgan Chase raised its 2025 net interest income forecast and beat second-quarter profit estimates.
In the euro zone, the banking index slipped 1.1 per cent. Germany's Commerzbank, Italy's Banco BPM and France's Societe Generale each fell more than 2 per cent.
Healthcare also lagged, with Danish drugmaker Novo Nordisk sliding 2.3 per cent.
Ericsson reported upbeat results but the Swedish telecom equipment maker's shares declined 7.7 per cent after it warned of tariffs crimping its margin growth.
Barratt Redrow slid 9.4 per cent after Britain's largest homebuilder reported that home completions missed expectations for fiscal 2025.
UK's B&M slumped 9.1 per cent to a more-than-five-year low, after the discount retailer reported higher like-for-like revenue in its domestic business in the first quarter.
Curbing losses in the sector, the biggest supplier of computer chip-making equipment ASML climbed 2.7 per cent ahead of its earnings on Wednesday.
News on Tuesday that US consumer prices increased by the most in five months in June suggested tariffs were starting to fuel inflation, potentially keeping the Federal Reserve on the sidelines until September.
Among other stocks, Orsted gained 8.3 per cent after Morgan Stanley raised its rating on the Danish offshore wind developer to 'overweight' from 'equal weight'.
Accelleron rose 8.7 per cent to a record high after the engine components maker increased its revenue forecast for 2025. REUTERS
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