European equity markets opened the week on uncertain footing as investors digested news of escalating trade friction between the European Union and the United States. Regional benchmarks were mixed on Monday, with major indexes showing only modest movement amid tariff concerns.
According to The Wall Street Journal, EU member countries are urging the European Commission to devise retaliatory measures in response to potential new U.S. tariffs. These could include import duties on American goods, restrictions on digital service providers, and limits on U.S. access to EU public contracts.
Despite the brewing tensions, downside pressure on stocks was contained. The European Central Bank’s quarterly Survey on the Access to Finance of Enterprises found that Eurozone companies remain generally upbeat about their near-term growth outlook.
In currency markets, the euro held steady due to a quiet economic calendar. Meanwhile, German government bond yields flattened ahead of key eurozone PMI data and the ECB’s policy announcement later this week, with most analysts anticipating no change in interest rates.
On the indices front, France’s CAC 40 slipped 0.4%, while Germany’s DAX and the UK’s FTSE 100 each dipped by 0.1%.
Corporate Highlights:
- Ryanair Holdings (LSE:0RYA) soared over 6% after the budget airline more than doubled its net profit for the April-June quarter, driven by robust ticket prices and cost discipline.
- Stellantis NV (BIT:STLAM) shares dropped 1.3% as the company projected a net loss of €2.3 billion for H1 2025, citing the initial financial impact of looming U.S. tariffs.
- Hochtief AG (TG:HOT) rose 1% after securing a €172 million infrastructure contract from Deutsche Bahn, Germany’s state-owned railway operator.
- Bayer AG (TG:BAYN) gained nearly 1% following EU approval of its prostate cancer drug Nubeqa for a third treatment indication.
- BP Plc (LSE:BP.) advanced 0.5% as the energy major announced Albert Manifold as its new chairman, replacing Helge Lund.
- Hunting Plc (LSE:HTG) climbed 2% after landing a $31 million contract for work on a gas project in the Black Sea.
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