FX.co ★ European Stocks Start Week Lower

European stocks predominantly ended lower on Monday as investors evaluated the impact of U.S. tariffs on key trading partners. The STOXX 50 index decreased by 0.4% to close at 5,305, while the broader STOXX index also fell by 0.4% to 542. U.S. officials reported progress in negotiations with major partners such as China and the European Union. Meanwhile, Canada decided to withdraw its proposal for a Digital Services Tax following President Trump’s weekend declaration of halting all trade talks with Canada. Additionally, Monday marked the commencement of the UK-US trade agreement, finalized last month.

On the economic data front, inflation in Germany unexpectedly declined to 2% in June, aligning with the European Central Bank's target, whereas Italy's inflation slightly increased to 1.7% as anticipated. Consumer Price Index figures released last week indicated that inflation in France and Spain largely remained subdued.

In corporate developments, market performance was varied, with L'Oréal witnessing a 2.3% increase, while Siemens and Schneider both experienced a 1% decline. For June, the STOXX 50 recorded a 0.9% decrease, and the STOXX 600 saw a 1.2% drop.