European equity markets showed a lack of clear direction on Monday, with investors adopting a cautious stance ahead of an imminent U.S. trade policy deadline that could reshape global economic relations.
By 07:05 GMT, Germany’s DAX was up 0.3%, France’s CAC 40 rose 0.1%, while the UK’s FTSE 100 edged down 0.1%, reflecting the underlying uncertainty across markets.
Global Focus Turns to Trump’s Trade Ultimatum
Investors are bracing for potential volatility as the July 9 deadline set by U.S. President Donald Trump for finalizing trade deals approaches. The White House had temporarily held off on imposing sweeping tariffs after the April 2 “Liberation Day” announcement, giving international partners a 90-day window to negotiate new agreements.
Trump said over the weekend that multiple trade deals are nearing completion, while countries that have not reached an agreement will receive formal notifications of higher duties taking effect from August 1.
However, confusion remains over the actual tariff levels. While initial plans called for rates between 10% and 50%, Trump has since floated figures as high as 60% or 70%, adding further uncertainty. He also hinted at additional penalties—up to 10%—for nations perceived to align with anti-U.S. policies, including some BRICS members.
Positive Industrial Output in Germany
In macroeconomic news, Germany’s industrial production unexpectedly rose in May, with output increasing 1.2% month-on-month, supported by gains in the automotive and energy sectors. Analysts had forecast flat growth, making the results a welcome surprise.
Meanwhile, U.K. housing market data highlighted a continuing slowdown. According to Halifax, home prices were flat in June, with May’s figure revised slightly to show a 0.3% decline. The soft data reflects the impact of recent tax increases on property transactions that took effect in April.
Capgemini to Acquire WNS for $3.3 Billion
On the corporate front, Capgemini (EU:CAP) announced it will acquire WNS Holdings (NYSE:WNS) for $3.3 billion, a move aimed at bolstering its position in AI-driven business consulting. The deal marks Capgemini’s push into enterprise transformation services, as firms increasingly look to leverage AI to modernize operations.
Shell Warns of Weak Q2
Shell (LSE:SHEL) issued a trading update indicating that its second-quarter performance will likely weaken, citing lower profitability in its Integrated Gas and Chemicals businesses. The company attributed the decline to subdued trading activity and pricing pressures.
Crude Falls on OPEC+ Output Hike
Oil prices retreated on Monday following OPEC+’s decision to ramp up production more than anticipated. At 03:05 ET, Brent crude fell 0.2% to $68.18 a barrel, while WTI dropped 0.1% to $66.46.
OPEC+ announced on Saturday it will raise production by 548,000 barrels per day (bpd) in August, exceeding the 411,000 bpd monthly increases previously set for May through July. The group also signaled the possibility of another similar increase in September, to be confirmed at its August 3 meeting.
The move reflects an ongoing rollback of 2.2 million bpd in voluntary cuts—originally spearheaded by major producers such as Saudi Arabia and Russia—which had been introduced to stabilize prices earlier this year.
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