Market wrap: reshuffling in European markets after trade turmoil – what to watch? 🔎

• European stock exchanges are trading mostly lower on Monday after US President Donald Trump announced a new, uniform 15% global tariff, effective immediately.

• The decision followed a Supreme Court ruling that blocked a significant portion of the previous tariff system, which had briefly improved market sentiment at the end of last week. The renewed escalation has once again increased trade uncertainty and reduced risk appetite. Investors are concerned about the impact on global growth and inflation expectations. US index futures also point to a weaker opening.

• Major European indices are under pressure – the Euro Stoxx 50 (EU50) is down around 0.20%, while Germany’s DAX is falling about 0.44%, reflecting its high exposure to international trade. France’s FRE40 briefly reached a new all-time high before turning lower (currently -0.25%). The UK100 is down 0.25%. The broad Stoxx 600 index is declining around 0.30%, with most sectors in negative territory. Among the weakest are industrial companies sensitive to foreign trade.

• Sector moves and individual stocks are mixed. Luxury companies such as Kering (KER.FR +3.30%) and LVMH (MC.FR +1.50%) initially supported the French market, while aerospace and defense firms, including Airbus and Thales, were declining.

• Novo Nordisk (NOVOB.DK) is down more than 12% after its obesity drug CagriSema failed to meet the primary endpoint in a clinical trial. This intensified competition concerns.

• Johnson Matthey (JMAT.UK) is losing over 16% following a reduction in the sale price of its Catalyst Technologies division.

• JD Sports (JD.UK) is gaining 5.00% after announcing a £200 million share buyback program.

• Rolls-Royce (RR.UK) is down 1.20% ahead of earnings due later this week.

• Macroeconomic data provided some support for the European outlook despite market volatility. Germany’s Ifo business climate index rose to 88.6 points in February, slightly above expectations and the highest since August, signaling cautious signs of recovery.

• Recent euro area PMI data released at the end of last week also showed manufacturing returning to expansion territory after several months of contraction.

• ECB President Christine Lagarde warned that unpredictable trade policy could disrupt investment and economic stability. In the coming days, the market is awaiting further corporate earnings releases in Europe.

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