• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Europe markets open: STOXX 600 dips 0.2% on renewed US tariff threats; auto sectors under pressure

by June 2, 2025
by June 2, 2025

European stock markets commenced the trading week on a weaker footing Monday, retreating from recent gains as fresh tariff pronouncements from US President Donald Trump threatened to reignite global trade tensions.

The cautious sentiment permeated most sectors, with particular pressure on steel and automotive stocks, while investors also looked ahead to a pivotal interest rate decision from the European Central Bank later in the week.

The continent-wide STOXX 600 index was down 0.2% as of 0708 GMT, reflecting a broad-based pullback after a period of positive performance that saw the benchmark round off monthly gains in May.

The catalyst for Monday’s downturn was President Trump’s statement late on Friday, in which he announced plans to increase tariffs on imported steel and aluminum to a hefty 50%, up from the previous 25%.

This move immediately drew a response from the European Union, which stated it was prepared to retaliate, setting the stage for a potential escalation in trade disputes.

The impact of these renewed tariff threats was felt acutely in specific sectors.

European steel companies experienced a decline, with industry giant ArcelorMittal falling 1% and German conglomerate Thyssenkrupp dropping 1.1%.

The automotive sector, highly sensitive to import duties, also came under pressure, with the (.SXAP) index down 1.2%.

Auto stocks overall fell 1.4% amid fears that this latest development in the Trump tariff saga could lead to more stringent tariffs on vehicles, particularly following the US president’s unexpected announcement of the steel duty hike.

Risk-sensitive technology stocks also retreated, dropping 1%.

Corporate developments and market safe havens

Amidst the broader market unease, French pharmaceutical group Sanofi announced a significant acquisition.

The company agreed to buy US-based Blueprint Medicines Corporation, paying $129 per share, which represents an equity value of approximately $9.1 billion. Shares in Sanofi were slightly lower following the announcement.

As investors navigated the trade uncertainties, traditional safe-haven assets saw increased appeal.

Spot gold prices were up by around 1.5% ahead of the stock market open, trading at $3,337 an ounce – its highest level in a week.

This demand for gold may reflect investor concerns that President Trump could take even more aggressive tariff actions against specific countries and sectors, compounded by the escalating conflict in the Russia-Ukraine war.

Central Bank spotlight: ECB decision and key speeches awaited

Looking ahead, the major focus for the week will be the European Central Bank (ECB), which is scheduled to announce its interest rate decision on Thursday.

Market participants will be keenly awaiting any signals from the ECB regarding its monetary policy stance in light of the evolving economic and trade landscape.

Adding to the week’s significance, comments from both Federal Reserve Chair Jerome Powell and ECB President Christine Lagarde are anticipated.

These speeches will be closely scrutinized for insights into the central bankers’ views on inflation, growth, and potential policy responses.

A slew of economic data releases from the European trade bloc is also expected throughout the week, which will provide further context for market direction.

The post Europe markets open: STOXX 600 dips 0.2% on renewed US tariff threats; auto sectors under pressure appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
‘Bitcoin-style encryption’ for XChat? Musk’s claim sparks debate
next post
China’s manufacturing PMI edges up despite ongoing trade tensions

Related Posts

Top Hang Seng Tech Index stocks gainers in...

June 24, 2025

Why gold shines as a portfolio diversifier?

June 24, 2025

Starbucks denies plans to fully exit China operations...

June 24, 2025

Here’s why Teladoc Health stock price could surge...

June 24, 2025

JPMorgan projects another 15-20% surge in Asian tech...

June 24, 2025

Is the Iran-Israel ceasefire real or Trump’s dream?...

June 24, 2025

Europe markets open: stocks rally as Trump’s ceasefire...

June 24, 2025

Jio Financial Services shares: what’s behind latest surge?

June 24, 2025

CBA stock hits record, tops $200B after ceasefire,...

June 24, 2025

OKX eyes US IPO as crypto stock rally...

June 23, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Rethinking the Fed’s Framework: Lessons from the Post-Pandemic Inflation

    June 24, 2025
  • Mayday! Mayday! We Have Abuse of Emergency Powers

    June 24, 2025
  • Should Economists Rule the World?

    June 24, 2025
  • Top Hang Seng Tech Index stocks gainers in 2025 revealed

    June 24, 2025
  • Why gold shines as a portfolio diversifier?

    June 24, 2025
  • Starbucks denies plans to fully exit China operations amid rising local competition

    June 24, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,594)
  • Editor's Pick (167)
  • Investing (185)
  • Stock (1,034)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Pandora stock plunges as Trump tariffs on...

April 5, 2025

Europe market open: Stoxx 600 slips 0.8%...

April 16, 2025

European stocks open lower amid Israel-Iran tensions;...

June 19, 2025