European stocks commenced the week with a sense of caution, as both the STOXX 50 and STOXX 600 indices lingered close to unchanged levels. This steadiness reflects investors' vigilant attention to ongoing trade developments and the latest batch of corporate earnings reports. Currently, there appears to be no resolution in the trade discussions between the European Union and the United States. Though negotiations continue, reports suggest the EU is prepared to implement countermeasures if an agreement is not reached and the US proceeds with its planned 30% tariff on European imports, set for August 1st.
In corporate news, Stellantis shares declined by nearly 1.7% after the company projected a €2.3 billion net loss for the first half of 2025. This announcement negatively impacted the broader automotive sector, with stocks from VW (-0.7%), BMW (-0.5%), Renault (-0.2%), and Mercedes-Benz (-0.2%) also registering declines. Conversely, BP's share price increased by 0.6% following the appointment of a new CEO, while Ryanair experienced a surge of over 5% after revealing its first-quarter net profit had more than doubled.
