FX.co ★ European Stocks Fall on Wednesday

On Wednesday, the Stoxx 50 index experienced a decline of 1%, while the Stoxx 600 dipped by 0.3%, as investors processed mixed signals regarding global trade. In a recent announcement, U.S. President Trump revealed a new trade framework with China. This agreement emphasizes the supply of rare earth elements and ensures Chinese students' continued access to American universities. Conversely, European officials remain cautious about their own trade negotiations with the U.S., suggesting that talks may extend beyond the July 9 deadline and only result in a preliminary agreement by then. Market sentiment was further dampened by a significant drop in retail stocks. Notably, Inditex saw its shares tumble by over 4% after reporting lower-than-expected quarterly sales and noting a slow start to the summer season, attributed to economic pressures. On a more positive note, the automotive and basic resources sectors experienced gains, buoyed by the U.S.-China trade announcement.