Top Movers

Europe close: Stocks give up early gains to finish mixed

By Benjamin Chiou

Date: Monday 30 Jun 2025

(Sharecast News) - After a positive start, European stocks finished mixed on Monday amid a lack of major newsflow, though hopes of M&A activity lifted banking equities in Spain and Italy.
The Stoxx Europe 600 fell 0.4% to 541.37, with losses of between 0.3% and 0.5% registered in London, Frankfurt, Paris and Zurich.

However, markets in Madrid and Milan edged high on reports that Santander is among the bidders that have submitted a binding offer for TSB, owned by Spain's Sabadell.

Nevertheless, the mostly negative finish across Europe came despite a decent start on Wall Street, where the three main benchmark indices opened with gains.

"A wide gulf has opened between European stocks and their US counterparts today, as the final trading day of the quarter arrives. While US stocks have Fed cuts and the likely passage of the budget bill to look forward to, European names continue to fret about a possible trade showdown with the US," said Chris Beauchamp, chief market analyst at IG.

"It's never wise to read too much into the movements at quarter-end, and the lack of news flow only compounds the problem."

Economic data barrage

Retail sales in Germany fell at the sharpest rate in more than two and a half years in May, according to data from Destatis. Retail sales were down 1.6% last month, following a 0.6% decline in April, Destatis reported. The consensus forecast was pointing to growth of 0.5%. This was the steepest rate of a decline since October 2022.

The German annual inflation rate unexpectedly fell to 2% in June, Destatis also reported. The fall brings CPI line with the European Central Bank's target and was better than a 2.2% reading forecast by analysts.

Meanwhile, the British economy grew by 0.7% in the first quarter, but households saved less amid the cost-of-living crisis, with rent, food and fuel taking larger chunks of earnings, according to final official figures which were unchanged from preliminary estimates.

In China, manufacturing activity contracted for a third consecutive month in June, an official survey revealed, despite government stimulus measures helping to shore up the industrial sector. The official purchasing managers' index improved slightly to 49.7 in June from 49.5 in May but stayed below the 50-benchmark separating expansion from contraction, according to data from the National Bureau of Statistics.

Market movers

News that Santander was potentially making a move on Sabadell's TSB lifted stocks across banking. The offer would value the UK bank at more than £2.3bn and the Spanish lender may hold a board meeting as soon as Tuesday to decide on whether to proceed with the sale and then a winning bid, according to a report. The move on TSB, which has the seventh largest branch network among UK banks, comes as Sabadell tries to ward off being taken over by rival BBVA.

Swiss banking giant UBS was also higher on the announcement of a new $2bn share buyback programme despite this month's announcement of stricter capital rules by the government.

Zalando rose after Jefferies initiated coverage of the German group at 'buy', saying it is "a top-class operator in European online clothing retail".

Vestas, EDP Renovaveis and Orsted all fell as US President Donald Trump's Bill to axe tax credits for solar and wind power by 2028 made progress in the Senate.

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