Major European stock exchanges experienced a downturn on Friday, with both the STOXX 50 and STOXX 600 indices dipping close to 0.5%. This decline was driven by revived trade tensions impacting investor sentiment. The President of the United States announced a 35% tariff on Canadian imports, effective August 1st, and indicated plans to implement comprehensive tariffs ranging from 15% to 20% on most other global trading partners. The European Union is anticipated to receive official notification of these tariffs, potentially later today. Among the negatively impacted megacap stocks were SAP, which fell by 0.7%, Nestlé by 0.5%, LVMH by 2.1%, Hermès by 1.3%, ASML Holding by 0.8%, and Novo Nordisk by 1%.
In parallel, investor attention was also directed toward corporate earnings and business developments. For instance, BP shares rose by 1.9% despite a report of reduced oil and gas sales in the second quarter. Similarly, the luxury brand Brunello Cucinelli saw its shares remain relatively stable after announcing a 10.7% growth in first-half revenues. Despite Friday's setbacks, stocks are still poised for robust weekly gains, with the STOXX 50 having increased by 2.9% and the STOXX 600 by 2.2% for the week to date.
