Europe: Shares end lower as investors assess mixed earnings; focus on trade talks

EUROPEAN shares ended a choppy session in the red on Monday, as investors weighed a mixed bag of corporate earnings and keenly awaited the outcome of ongoing trade negotiations between the US and the European Union.

The pan-European Stoxx 600 index closed 0.1 per cent lower at 546.58, as a drop in healthcare stocks such as Roche and Novonordisk offset gains in mining companies.

Traders were gearing up for a week filled with corporate updates in both Europe and the US and will scrutinise company reports for any clues on the impact trade uncertainty has had on profitability and consumer demand.

On Monday, Stellantis said it expects a net loss of 2.3 billion euros (S$3.4 billion) for the first half of 2025 as the automaker faced the dual challenge of revamping its product ranges while also dealing with the impact of US tariffs.

Shares of the automaker were volatile throughout the day and settled about 1.5 per cent higher.

Ryanair jumped 5.7 per cent after Europe’s largest low-cost carrier reported that its quarterly profit more than doubled. Other airline stocks such as Lufthansa and EasyJet gained about 1 per cent each.

Meanwhile, trade negotiations were high on the radar as diplomats said that the EU is exploring wide-ranging “anti-coercion” measures which would let the bloc target US services or curb access to public tenders in the absence of a deal.

US President Donald Trump has threatened 30 per cent duties on imports from Europe if no agreement is signed before the Aug 1 deadline.

“The question ultimately boils down to whether the EU can swallow an unbalanced outcome which is tilted in favour of the US, or whether Trump would accept some form of EU countermeasures without ratcheting up tariffs further,” said Henry Cook, senior economist at MUFG bank.

“The landing ground for a deal still looks small and there is plenty of risk that things could go south.”

The benchmark Stoxx 600 has recovered all its losses from the April selloff when Trump slapped tariffs on world economies. However, trade ambiguities and their impact on corporates have kept investors wary.

The prevailing uncertainty had investors also flocking to safe-havens including gold and European sovereign bonds on Monday.

Among stocks, Delivery Hero logged its biggest one-day jump of over 16 per cent in more than a year. On Friday, Prosus had offered to slash its stake in the German company and give up its board seat to address EU concerns over its 4.1 billion euro (S$6.1 billion) Just Eat Takeaway deal, according to sources.

Miners Glencore, Anglo American and Antofagasta rose between 3 per cent and 5 per cent, tracking a rise in industrial metal prices after China vowed to stabilise its industrial growth, and on hopes for more stimulus.

Markets also await the ECB’s policy decision later this week with traders pricing in no change in interest rates. REUTERS