FX.co ★ European Stocks Close Lower

European stocks experienced a slight decline on Tuesday amid trade uncertainties and questions about the European Central Bank's (ECB) future interest rate cuts. The Eurozone's STOXX 50 index decreased by 0.3% to settle at 5,288, while the broader STOXX 600 index across Europe fell by 0.2% to 540. Reports suggest that the European Union is open to negotiating a deal that would implement a 10% universal tariff on certain exports. However, the EU is pushing for concessions from the United States in pivotal sectors including pharmaceuticals, alcohol, semiconductors, and commercial aircraft. The EU’s trade representative is scheduled to lead a delegation to Washington this week to progress in these discussions, according to Bloomberg sources. On the economic front, preliminary data revealed that Eurozone inflation remained steady at 2%, aligning with the ECB’s target. Meanwhile, ECB Chief Economist Philip Lane announced that the central bank has concluded its recent cycle of tightening monetary policy. The industrial and banking sectors bore the brunt of the losses, with notable declines from companies such as Airbus, Safran, and UniCredit, which decreased between 5% and 2%. Conversely, LVMH, Kering, and L'Oreal saw gains of approximately 4%.