FX.co ★ European Stocks Slip as June Begins

European stocks began June on a downward trend, as both the STOXX 50 and STOXX 600 indices experienced declines of nearly 0.6%, pulling back after recording significant gains of approximately 4% in May. This decrease is occurring in the context of rising uncertainty and an increased shift towards safer investments. Geopolitical tensions have intensified, highlighted by China's accusations that the United States has violated their recent trade agreement, a claim that follows President Trump's assertions last week of China's breach of the deal. Furthermore, Trump revealed intentions to increase tariffs on steel and aluminum to 50% from the previous 25%, a decision that has been met with criticism from the European Union. Additionally, market participants are preparing for the European Central Bank's upcoming monetary policy decision this week, with anticipations of another interest rate cut. Investors are also closely monitoring the results of Poland’s presidential election runoff, where the eurosceptic candidate Karol Nawrocki secured victory.