European stocks predominantly ended lower on Monday as investors evaluated the impact of U.S. tariffs on key trading partners. The STOXX 50 index decreased by 0.4% to close at 5,305, while the broader STOXX index also fell by 0.4% to 542. U.S. officials reported progress in negotiations with major partners such as China and the European Union. Meanwhile, Canada decided to withdraw its proposal for a Digital Services Tax following President Trump’s weekend declaration of halting all trade talks with Canada. Additionally, Monday marked the commencement of the UK-US trade agreement, finalized last month.
On the economic data front, inflation in Germany unexpectedly declined to 2% in June, aligning with the European Central Bank's target, whereas Italy's inflation slightly increased to 1.7% as anticipated. Consumer Price Index figures released last week indicated that inflation in France and Spain largely remained subdued.
In corporate developments, market performance was varied, with L'Oréal witnessing a 2.3% increase, while Siemens and Schneider both experienced a 1% decline. For June, the STOXX 50 recorded a 0.9% decrease, and the STOXX 600 saw a 1.2% drop.
