European stocks edged lower on Tuesday as investors remained cautious, weighed down by disappointing corporate results and escalating trade tensions.
Reports indicate the European Union is gearing up to implement retaliatory actions under its Anti-Coercion Instrument (ACI) in response to U.S. President Donald Trump’s plan to impose a 30% tariff on EU goods starting August 1st.
Meanwhile, hopes for a temporary trade agreement between the U.S. and India before the August 1 deadline have faded, due to ongoing disputes over critical agricultural and dairy products.
On the economic front, UK data revealed a sharp increase in the budget deficit for June. Public sector net borrowing surged by GBP 6.6 billion year-over-year to GBP 20.7 billion, exceeding the Office for Budget Responsibility’s forecast of GBP 17.1 billion. This marks the second-largest June borrowing since records began in 1993.
In market performance, Germany’s DAX Index fell 1.3%, France’s CAC 40 declined 0.9%, and the UK’s FTSE 100 edged down 0.1%.
Among individual stocks, Dutch paint and coatings firm Akzo Nobel NV slipped after reporting weaker Q2 net profits and sales, impacted by currency headwinds and soft market conditions.
Swedish engineering company Alfa Laval also declined, missing expectations on second-quarter orders and sales.
Swiss bank Julius Baer saw shares drop following a sharp profit decrease caused by higher loan loss provisions.
Fragrance and flavor specialist Givaudan tumbled after reporting a negative free cash flow of CHF 16 million for the first half of 2025.
German pharmaceutical and lab equipment supplier Sartorius AG fell as well. The company upheld its 2025 guidance but cautioned that its sales and margin outlook excludes potential impacts from tariffs or related adjustments.
In contrast, Integrum AB shares surged after the company’s independent bid committee recommended shareholders accept the public takeover offer from OsteoCentric Oncology and Bone Anchored Prostheses, LLC.
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