FX.co ★ European Stocks Close Lower

European stocks initially gained but ultimately ended mostly lower on Tuesday as investors continued to evaluate the potential impact of US tariffs on European businesses. The STOXX 50 concluded the day down by 0.3%, closing at 5,358, while the STOXX 600 decreased by 0.4% to finish at 545. This market movement follows US President Trump's announcement of a 30% tariff on European Union imports, effective from August 1st. In response, the EU is actively pursuing a trade agreement, yet has also prepared a retaliation package that could impose tariffs on up to €72 billion of US goods if necessary. The financial services sector was particularly affected, with substantial declines seen in companies such as Allianz, BBVA, and UniCredit, which fell between 1% and 2%. Meanwhile, Ericsson's stock dropped by more than 4%, despite the company surpassing earnings expectations, due to the negative impact of US import tariffs. Conversely, ASML experienced a 2.7% rise, buoyed by the US easing export restrictions on Nvidia chips.