European shares end lower as investors assess mixed earnings; focus on trade talks
The pan-European STOXX 600 index (.STOXX), opens new tab closed 0.1% lower, as a drop in healthcare stocks such as Roche (ROG.S), opens new tab and Novonordisk (NOVOb.CO), opens new tab offset gains in mining companies (.SXPP), opens new tab.
Traders were gearing up for a week filled with corporate updates in both Europe and the U.S. and will scrutinize company reports for any clues on the impact trade uncertainty has had on profitability and consumer demand.
On Monday, Stellantis (STLAM.MI), opens new tab said it expects a net loss of 2.3 billion euros ($2.68 billion) for the first half of 2025 as the automaker faced the dual challenge of revamping its product ranges while also dealing with the impact of U.S. tariffs.
Shares of the automaker were volatile throughout the day and settled about 1.5% higher.
Ryanair (RYA.I), opens new tab jumped 5.7% after Europe's largest low-cost carrier reported that its quarterly profit more than doubled. Other airline stocks such as Lufthansa (LHAG.DE), opens new tab and EasyJet (EZJ.L), opens new tab gained about 1% each.
Meanwhile, trade negotiations were high on the radar as diplomats said that the EU is exploring wide-ranging "anti-coercion" measures which would let the bloc target U.S. services or curb access to public tenders in the absence of a deal.
U.S. President Donald Trump has threatened 30% duties on imports from Europe if no agreement is signed before the August 1 deadline.
"The question ultimately boils down to whether the EU can swallow an unbalanced outcome which is tilted in favour of the U.S., or whether Trump would accept some form of EU countermeasures without ratcheting up tariffs further," said Henry Cook, senior economist at MUFG bank.
"The landing ground for a deal still looks small and there is plenty of risk that things could go south."
The benchmark STOXX 600 has recovered all its losses from the April selloff when Trump slapped tariffs on world economies. However, trade ambiguities and their impact on corporates have kept investors wary.
The prevailing uncertainty had investors also flocking to safe-havens including gold and European sovereign bonds on Monday. EUR/GVD
Among stocks, Delivery Hero (DHER.DE), opens new tab logged its biggest one-day jump of over 16% in more than a year. On Friday, Prosus had offered to slash its stake in the German company and give up its board seat to address EU concerns over its 4.1 billion euro ($4.78 billion) Just Eat Takeaway (TKWY.AS), opens new tab deal, according to sources.
Miners Glencore (GLEN.L), opens new tab, Anglo American (AAL.L), opens new tab and Antofagasta (ANTO.L), opens new tab rose between 3% and 5%, tracking a rise in industrial metal prices after China vowed to stabilise its industrial growth, and on hopes for more stimulus. IRN/
Markets also await the ECB's policy decision later this week with traders pricing in no change in interest rates.
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