FX.co ★ European Stocks Close Lower

On Friday, European equities ended the trading session with notable losses, driven by ongoing trade tensions with the United States. The Eurozone's STOXX 50 index declined by 1% to settle at 5,291, while the pan-European STOXX 600 decreased by 0.5%, closing at 541. The European Commission revealed its efforts towards establishing a trade agreement framework with the US to prevent the reimplementation of severe tariffs by the looming July 9th deadline. Meanwhile, US representatives highlighted that there would be no extensions granted to this timeline, warning of possible unilateral tariffs reaching up to 70% on nations lacking a trade pact. Concurrently, officials from the European Central Bank indicated a potential miss on the 2% inflation target if the euro remains consistently strong at $1.20 over an extended timeframe. From an economic perspective, the region observed a 0.6% decrease in producer prices from April to May. Among the sectors most affected were financial institutions, technology, and industrial leaders, with significant declines from companies such as BBVA, Siemens, and ASML, all slipping approximately 2.5%. Additionally, LVMH shares dropped 1.8% in response to China's announcement of tariffs on EU brandy imports.