European shares pressured by Trump's new tariff threats
FRANKFURT: European shares retreated on Monday after rounding off monthly gains in May, as US President Donald Trump's new tariff plans threatened to rekindle global trade tensions.
The continent-wide STOXX 600 was down 0.5% as of 0759 GMT, after recording about a 4% gain in May.
Late on Friday, Trump said he planned to increase tariffs on imported steel and aluminum to 50% from 25%, to which the European Union said it was prepared to retaliate.
Steel companies such as ArcelorMittal and Aperam were down about 1% each. Automakers saw the biggest impact, with Milan-listed Stellantis down 3%. Mercedes-Benz, BMW and Volkswagen fell between 1.4% and 2%. The sector dipped 1.6%.
Luxury stocks, among Europe's exports, also dipped with the broader gauge down 1.6%. An index measuring volatility in the market was up 1.7 points at 20.88, its highest in a week. 'The latest announcement renews tensions... it's also an indication that the trade negotiations may not be going toward the right direction,' said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
'The trade tensions have a very direct impact on the luxury sales, because for the biggest exports of the major European companies, America is one of the biggest markets.' Most regional bourses were trading lower, with Germany's DAX down 0.6%.
However, oil stocks tracked prices of the commodity sharply higher, after producer group OPEC+ decided to increase output in July by an amount which is less than feared by many.
An index tracking defence companies also ticked higher as tensions between Russia and Ukraine flared again over the weekend, but representatives were due to meet on Monday.
Among other stocks, Sanofi agreed to buy US-based Blueprint Medicines Corporation, paying $129 per share, representing an equity value of approximately $9.1 billion. Shares in the French pharma group fell 1.2%. Elsewhere, stocks in Poland fell 1.4%, after nationalist opposition candidate Karol Nawrocki won the second round of the country's presidential election.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
40 minutes ago
- Express Tribune
Putin warns Trump of response to Ukrainian attacks on Russia
Russian President Vladimir Putin chairs a meeting with members of the government via video link at the Novo-Ogaryovo state residence outside Moscow, Russia June 4, 2025. PHOTO: REUTERS Listen to article Russian President Vladimir Putin told US President Donald Trump on Wednesday that he would have to respond to high-profile Ukrainian drone attacks on Russia's nuclear-capable bomber fleet and a deadly bridge bombing that Moscow blamed on Kyiv. The war in Ukraine is intensifying after nearly four months of cajoling and threats to both Moscow and Kyiv from Trump, who says he wants peace after more than three years of the deadliest conflict in Europe since World War Two. After Ukraine bombed bridges and attacked Russia's fleet of nuclear-capable bombers deep in Siberia and Russia's far north, Putin on Wednesday said he did not think Ukraine's leaders wanted peace. Shortly after Putin discussed the attacks with top ministers in Moscow, Trump said he had spoken by telephone with Putin for one hour and 15 minutes, and that they had discussed the Ukrainian attacks and Iran. "We discussed the attack on Russia's docked airplanes, by Ukraine, and also various other attacks that have been taking place by both sides. It was a good conversation, but not a conversation that will lead to immediate Peace," Trump said on social media. Russia has unleashed several massive aerial attacks on Ukraine over recent weeks. "President Putin did say, and very strongly, that he will have to respond to the recent attack on the airfields," Trump said, adding that he hoped Putin could be helpful in US negotiations with Iran over the Islamic Republic's nuclear programme. Trump said he believed Putin agreed with Washington that Iran "cannot have a nuclear weapon," and accused Tehran of "slowwalking" decisions regarding the talks. Trump has been unusually silent on the Ukrainian attacks on the Russian bombers - one of the three pillars of Russia's nuclear arsenal - though Moscow demanded that the United States and Britain restrain Ukraine. The Kremlin said Trump had told Putin that Washington was not informed in advance of the Ukrainian attacks. Trump's Ukraine envoy said the risk of escalation from the war in Ukraine was "going way up" after the strikes. Russia and the United States are by far the world's biggest nuclear powers: together they hold about 88% of all nuclear weapons. Each has three ways of nuclear attack - strategic bombers, land-launched intercontinental ballistic missiles and submarine-launched ballistic missiles - and any attack on any part of the "triad" is considered a grave escalation. WAR OR PEACE? In some of his most hawkish remarks in recent months on the outlook for peace, Putin on Wednesday said the bridge attacks had been directed against civilians and accused Ukrainian leadership of being a "terrorist organisation" supported by powers who were becoming "terrorist accomplices." "The current Kyiv regime does not need peace at all," Putin said at a meeting with senior officials. "What is there to talk about? How can we negotiate with those who rely on terror?" Ukraine has not commented on the bridge attacks. It denies it targets civilians, as does Russia, though civilians have been killed by both sides. Kyiv has similarly accused Moscow of not seriously wanting peace, citing as evidence Russian resistance to an immediate ceasefire. Russia says certain conditions must first be met. Putin, in his public remarks, did not mention the bomber attacks, which came just before Russia and Ukraine met for direct peace talks in Istanbul where Moscow set out what the United States has called "maximalist" aims. Before Putin spoke, other Russian officials said military options were "on the table" for its response to Ukrainian attacks deep inside Russia and accused the West of being involved in them. "We urge London and Washington to react in such a way as to stop further escalation," Russian Deputy Foreign Minister Sergei Ryabkov was quoted by the Interfax news agency as saying. Ryabkov oversees relations with the US and arms control. British and US officials have said they had no prior knowledge of the weekend attacks on Russian nuclear-capable long-range bombers. The White House has said Trump was not informed of Ukraine's drone attack before it unfolded.
Express Tribune
an hour ago
- Express Tribune
The UK is open for business
Listen to article Kickstarting economic growth is the number one mission of the UK government. We know that this is also a goal that many of our partners, including Pakistan, share and one that can only be delivered by working together. Britain has always been an outward-looking trading nation with an open and stable economy. But with three new trade deals signed in May, we have taken a major step forward in driving prosperity at home and overseas. An economic deal with the Trump administration will reduce tariffs across a range of sectors, from steel and aluminium to automotives, and cut costs for businesses operating here in the UK. And a new agreement between the UK and the European Union will give more certainty to businesses, providing opportunities for companies to expand their operations with some of the UK's closest neighbours. Our message is simple. We are a trusted partner ready to negotiate constructively. We have one of the largest economies in the world, with cutting-edge businesses, brilliant universities and a talented workforce. And we have an innovative economy embracing new trends like AI. The UK and Pakistan share a longstanding and evolving trade partnership rooted in mutual opportunity and trust. With over £4.7 billion in bilateral trade, the UK is Pakistan's largest trading partner in Europe. And it's not just foreign leaders and decision-makers that recognise this. A recent survey of global CEOs ranked the UK as the second most attractive country to invest in. In March, companies from around the world, including Blackstone, Amazon and DP World, collectively committed to invest £63 billion in the UK at the Global Investment Summit. It is as a result of this work that just last month, the UK's growth rate was upgraded to the highest within the G7. And we're building on these strengths. Earlier this year the UK announced £13 billion of capital investment over the next five years to deliver the projects needed to catalyse private investment, boost growth and drive forward the UK's modern industrial strategy. This follows £100 billion of capital investment announced last autumn. We are also ripping up unnecessary regulation to cut the administrative costs on business by a quarter over the next five years. And soon we will unveil a new Industrial Strategy which will give businesses even greater confidence to invest and expand in the UK. There are already several businesses from Pakistan in the UK, including firms like Abacus. A leading tech consulting firm, Abacus exemplifies the potential of cross-border enterprise, showcasing how Pakistani innovation and British collaboration can fuel shared prosperity. But with the offer of certainty, stability and simplicity, we will give more firms the confidence to expand and invest in the UK. The US and EU both recognised the huge potential of a closer trading relations with the UK under this government. And they are not the only examples. The UK is now an active member of CPTPP after becoming the first European member earlier this year. We're also building new partnerships with the emerging markets of the future. These deals are just the beginning. Our diplomats and trade negotiators have sent a signal — the UK is open for business.
Business Recorder
2 hours ago
- Business Recorder
Trump says Putin plans to retaliate after Ukraine drone strikes
WASHINGTON: Donald Trump says Vladimir Putin warned him 'very strongly' in a call Wednesday that he would respond to Ukraine's stunning attack on Russian airfields, adding that any immediate prospect of peace remained far off. Kyiv's daring mass drone strikes on Sunday destroyed several nuclear-capable bombers worth billions of dollars, and dominated the third call between the Russian and US presidents since Trump returned to power. Earlier, Putin had appeared to rule out a ceasefire or any direct talks with Ukrainian President Volodymyr Zelensky. Turkey has suggested it could host such negotiations and invited Trump, too. Trump says he has had good discussions on Russia and Ukraine 'It was a good conversation, but not a conversation that will lead to immediate Peace,' said Trump in a social media post. 'President Putin did say, and very strongly, that he will have to respond to the recent attack on the airfields.' The US leader added that during his call with Putin, whose forces invaded Ukraine in 2022, launching a grinding war, they had 'discussed the attack on Russia's docked airplanes' as well as other attacks 'by both sides.' The Kremlin described the call, which also focused on negotiations over Iran's nuclear program, as 'positive' and 'productive.' Trump has repeatedly alarmed Kyiv and its allies in Europe and elsewhere by pivoting towards Putin over the war, and he had a blazing Oval Office row with Zelensky in February. The US president has, however, also shown growing frustration with Putin – last week calling him 'crazy' – as Russia has continued attacks and derailed Trump's campaign pledge to end the war within 24 hours. Putin's call with Trump appeared to be part of a diplomatic offensive by the Russian leader, who discussed the Ukraine war with Pope Leo XIV in a telephone conversation on Wednesday. The Kremlin said Putin told the US-born pope he wanted peace through diplomacy but added that 'the regime in Kyiv is betting on an escalation of the conflict and carrying out of acts of sabotage against civil infrastructure on Russian territory.' Putin earlier accused Ukraine of being behind 'terrorist' attacks on bridges in its border regions over the weekend, including one that caused a train to derail, killing seven people. He said any full ceasefire would just give Kyiv a chance to rearm. 'Why reward them by giving them a break from the combat, which will be used to pump the regime with Western arms, to continue their forced mobilization and to prepare different terrorist acts,' Putin said in a televised government meeting. Ukraine has been pushing for an unconditional and immediate 30-day truce, issuing its latest proposal to Moscow at peace talks in Istanbul on Monday. Zelensky said earlier Wednesday that Russia had handed Ukraine an 'ultimatum' and recycled old demands in Turkey, where the only concrete agreement was on a series of large-scale prisoner exchanges. Moscow's demands included Ukraine fully pulling out of four regions – Donetsk, Lugansk, Kherson and Zaporizhzhia – that Russia claims to have annexed but does not have full control over. Zelensky said Ukraine was ready 'any day' for a meeting proposed by Turkish President Recep Tayyip Erdogan that would also include the US and Russian leaders. The White House says Trump is 'open' to such a meeting. More than three years into Russia's invasion, which has cost tens of thousands of lives, the two sides have opened direct talks searching for a way to end what has become Europe's largest conflict since World War II. Ukrainian troops have been suffering months of setbacks on the battlefield as Russian forces steadily advance across key sectors of the sprawling front line. Russia's army said it had captured another village in Ukraine's Sumy border region as it seeks to establish what it calls a 'buffer zone' inside Ukrainian territory. Kyiv has sought to gain assurances of continued support from Washington. On Wednesday, senior Zelensky aide Andriy Yermak met US Secretary of State Marco Rubio in Washington.
