Monday on European stock exchanges brings mixed investor sentiment. Current listings on European stock exchanges indicate a moderate predominance of declines. Increases were recorded by the AUT20 (+0.53%), SPA35 (+0.16%), DE40 (+0.16%) and SUI20 (+0.07%) indices recorded increases, while W20, FRA40, NED25, ITA40, EU50 and VSTOXX recorded declines during the session – the Polish WIG20 (-0.41%) fell the most. The quotations of other major indices, such as UK100 and VSTOXX, remained relatively stable, signaling expectations for further developments. Sentiment on the European capital market is currently influenced by increased uncertainty, mainly related to the issue of new tariffs and a possible trade war with the US.
In the context of trade policy, the European Union is preparing a plan of retaliatory measures against the US, whose position on tariffs has hardened ahead of the August 1 deadline. The US administration is threatening to introduce a universal tariff of over 10% on most goods from the EU, with a few exceptions. The lack of progress in negotiations means that the EU intends to develop a rapid response scenario in the coming days, including the launch of a list of potential retaliatory tariffs worth up to €72 billion. A possible escalation of the conflict could increase pressure on European stock indices and negatively affect investor sentiment in the coming weeks.
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Source: xStation
Current volatility in the broader European market. Source: xStation
The German DE40 index is up 0.16% in today's session and remains above the support zone marked by the 50-day exponential moving average (blue curve on the chart) and the average determined by Bollinger Bands on a 12-day price history with twice the standard deviation as the lower and upper auxiliary curves. As long as the D40 remains above these zones, the overall upward trend remains stable. Source: xStation
Market news
Roche Holding AG's (ROG.CH) experimental lung drug, astegolimab, failed late-stage trials in current and former smokers with chronic obstructive pulmonary disease (COPD). According to the drug's manufacturer, it did not reduce the number of exacerbations in a statistically significant way. The company's shares are down nearly 1% today.
In terms of sectors, mining stocks are performing relatively well today as iron ore and steel prices have reached their highest levels in four months due to China's plan to build a huge dam in Tibet and Beijing's efforts to reduce excess production capacity.
Source: xStation
Stellantis (STLAM.IT) reported a preliminary net loss of €2.3 billion for the first half of the year, while the market consensus forecast a profit of €25.1 million. The results were mainly impacted by one-off costs of approximately €3.3 billion related to restructuring, project cancellations and the effects of new import tariffs in the US, which also translated into a lower operating margin and weaker cash flow. The company expects the situation to improve in the second half of the year, counting on the effect of the corrective measures being implemented and the introduction of new products. The company's shares are currently down nearly 1%.
Other news from individual DAX index companies. Source: Bloomberg Financial Lp
