Europe close: Shares slide on trade worries despite Wall St surge
By Frank Prenesti
Date: Monday 21 Jul 2025
(Sharecast News) - European stock markets closed lower on Monday as investors fretted about the chances of a US-EU trade deal before the August 1 deadline imposed by President Donald Trump.
The pan-regional Stoxx 600 finished 0.13% at 546.30, with France's CAC 40 paring losses to close down 0.31% and Germany's DAX bucked the trend with a 0.02% gain. A strong start to trade on Wall Street, with the S&P 500 and Nasdaq indices both hitting intra-day highs - wasn't enough to boost sentiment.
"While America partied hard, European stock markets were ready for bed. A lacklustre showing reflected investor concerns around the EU readying retaliation plans in case a US trade framework deal can't be agreed by 1 August. The EU would prefer to reach an amicable solution but the odds aren't looking good," said Dan Coatsworth, investment analyst at AJ Bell.
"Investors are hoping for a magnificent week on the markets as the S&P 500 and Nasdaq both hit new record intraday highs. Alphabet and Tesla on Wednesday kickstart the latest reporting season for the Magnificent Seven group of stocks, a pivotal moment given volatility in big tech earlier this year."
"Only three stocks from this pack (Nvidia, Meta and Microsoft) have delivered positive share price gains year-to-date and so the pressure is on for the others (Alphabet, Amazon, Apple, Tesla) to come up trumps and rekindle investor excitement.
"There have been concerns about tariffs, slowing growth and political ties in the case of Tesla, so anything to calm investor nerves could give support to the respective shares."
In equity news, autos stocks fell after Stellantis said it expected a net loss of €2.3bn in the first half of the year due to pre-tax net charges and the early effects of US tariffs.
Ryanair shares soared as the low-cost carrier more than doubled first quarter profits.
Glencore, Anglo American and Antofagasta all made strong hains on the back of stronger metals prices. Boliden rose 5.9% as Berenberg upgraded the Swedish miner to "buy" from "hold", while Belimo was up 5.5% after the Swiss heating and ventilation solution maker posted better-than-expected interim earnings.
Reporting by Frank Prenesti for Sharecast.com
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