On Tuesday, the STOXX 50 and STOXX 600 indices remained largely stable as market participants continued to closely watch international trade developments. According to a report from Politico, the United States has proposed a trade agreement to the European Union which includes maintaining a 10% baseline tariff on all EU imports, with specific exemptions for certain sensitive sectors, including aircraft and spirits. Nevertheless, the U.S. has not offered any exemptions for politically sensitive sectors such as the automotive, steel, aluminum, and pharmaceutical industries, which the EU had sought. Meanwhile, President Trump initiated the formal process of issuing tariff notifications on Monday. South Korea and Japan are set to face a 25% tariff starting August 1st.
On the corporate front, shares of wine and spirits giant Pernod Ricard advanced by approximately 1.8%, while Davide Campari Milano saw a 1.6% increase. Among the major corporations, performance was varied: SAP experienced a slight uptick of 0.1%, with LVMH remaining nearly unchanged. Conversely, Nestlé, Hermès, ASML Holding, and Novo Nordisk all saw declines of 0.3%.
