FRANKFURT: European shares ended a choppy session in the red on Monday, as investors weighed a mixed bag of corporate earnings and keenly awaited the outcome of ongoing trade negotiations between the US and the European Union.
The pan-European STOXX 600 index closed 0.1% lower, as a drop in healthcare stocks such as Roche and Novonordisk offset gains in mining companies.
Traders were gearing up for a week filled with corporate updates in both Europe and the US and will scrutinize company reports for any clues on the impact trade uncertainty has had on profitability and consumer demand.
On Monday, Stellantis 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 US tariffs. Shares of the automaker were volatile throughout the day and settled about 1.5% higher.
Ryanair jumped 5.7% after Europe’s largest low-cost carrier reported that its quarterly profit more than doubled. Other airline stocks such as Lufthansa and EasyJet 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 US services or curb access to public tenders in the absence of a deal.
US 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 US, or whether Trump would accept some form of EU countermeasures without ratcheting up tariffs further,” said Henry Cook, senior economist at MUFG bank.
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