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European Stocks Open Monday in Negative Territory
(MENAFN) European equities opened lower on Monday as automakers bore the brunt of selling pressure after US President Donald Trump threatened to hike import tariffs on cars originating from the European Union.
The Euro Stoxx 50 shed 0.08% by 0720GMT, while trading in London remained suspended due to a public holiday.
Carmakers led the retreat after Trump declared that the EU had not fully complied with a trade agreement previously negotiated with Washington. BMW tumbled 2.1%, Mercedes-Benz Group surrendered 1.9%, and Volkswagen retreated 1.7%, collectively dragging on the wider index.
The threat, first unveiled Friday, stemmed from Trump's assertion that Brussels had fallen short in fulfilling its commitments under the existing deal — an arrangement that had pegged tariffs at 15% on the majority of EU exports, automobiles and auto components included, while requiring the bloc to broaden access for American industrial goods and vehicles.
Tech equities bucked the downward trend, advancing on persistent investor appetite for artificial intelligence-exposed names — momentum that carried over from record-setting closes on Wall Street Friday and broad gains across Asian markets over the weekend.
European shares have broadly trailed their US and emerging-market counterparts since hostilities erupted in the Iran war on Feb. 28, with the ongoing conflict eroding consumer confidence and squeezing high-end retailers, notably LVMH and Hermès.
Despite a promising opening to 2025, European markets have struggled to keep pace with advances in Asia and the US, weighed down by persistent trade tensions, elevated geopolitical uncertainty, and underperformance across consumer-oriented sectors.
The Euro Stoxx 50 shed 0.08% by 0720GMT, while trading in London remained suspended due to a public holiday.
Carmakers led the retreat after Trump declared that the EU had not fully complied with a trade agreement previously negotiated with Washington. BMW tumbled 2.1%, Mercedes-Benz Group surrendered 1.9%, and Volkswagen retreated 1.7%, collectively dragging on the wider index.
The threat, first unveiled Friday, stemmed from Trump's assertion that Brussels had fallen short in fulfilling its commitments under the existing deal — an arrangement that had pegged tariffs at 15% on the majority of EU exports, automobiles and auto components included, while requiring the bloc to broaden access for American industrial goods and vehicles.
Tech equities bucked the downward trend, advancing on persistent investor appetite for artificial intelligence-exposed names — momentum that carried over from record-setting closes on Wall Street Friday and broad gains across Asian markets over the weekend.
European shares have broadly trailed their US and emerging-market counterparts since hostilities erupted in the Iran war on Feb. 28, with the ongoing conflict eroding consumer confidence and squeezing high-end retailers, notably LVMH and Hermès.
Despite a promising opening to 2025, European markets have struggled to keep pace with advances in Asia and the US, weighed down by persistent trade tensions, elevated geopolitical uncertainty, and underperformance across consumer-oriented sectors.
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