FX.co ★ European Stocks Fall Led by Autos

On Monday, the Stoxx 50 index witnessed a decline of over 1%, while the broader Stoxx 600 saw a decrease of 0.3%. This downturn was primarily due to renewed apprehensions of a trade conflict between the United States and China. President Trump revealed intentions to increase tariffs on steel and aluminum, which led to accusations from China that the US had breached their recent trade agreement, prompting China to promise retaliatory measures. Industries most vulnerable to global trade fluctuations suffered the most, with the automotive sector declining by 1.8%, technology stocks falling 1.2%, and household goods decreasing by 1%. In contrast, oil and gas stocks experienced gains, buoyed by heightened crude prices following OPEC+'s decision to implement a smaller-than-expected increase in supply. Defense stocks saw notable performance, with the Stoxx aerospace and defense index rising by 0.5%. Germany's Hensoldt experienced a significant surge of 11.6% after receiving an upgrade from JPMorgan, additionally bolstered by the United Kingdom’s announcement of new defense spending plans, including investments in attack submarines. Meanwhile, Sanofi shares fell by 1.9% after it revealed a $9.1 billion acquisition deal for US-based Blueprint Medicines.