Published by Global Banking & Finance Review®
Posted on March 24, 2025
3 min readLast updated: January 24, 2026
Add as preferred source on GoogleEuropean shares ended flat amid tariff uncertainties, with the STOXX 600 closing slightly lower. Mining stocks rose, while Vodafone and Bayer saw declines.
By Medha Singh and Nikhil Sharma
(Reuters) -European shares ended flat on Monday as caution prevailed, even as hopes grew that U.S. President Donald Trump could opt for a softer approach with his tariff policies in the coming weeks.
The pan-European STOXX 600 closed 0.1% lower, erasing earlier gains following the release of data that showed euro zone business activity grew at its fastest pace in seven months in March.
The global trade conflict kept the spotlight, with investors assessing a report that Trump's administration is likely to exclude a set of sector-specific tariffs while applying reciprocal levies on April 2.
"It is very hard now to classify exactly what is priced and what isn't, simply because it changes every day," said Bas van Geffen, quantitative analyst at Rabobank.
"People are very cautious about just how much is going to be announced (on April 2). So, that is also leading to some passive or more cautious tone in European equities over today."
The STOXX 600 index climbed last week after two consecutive weekly losses as Germany gave the final green light to a massive surge in borrowing to spur growth in the region's largest economy.
Germany's fiscal boost, along with Trump's trade war on multiple fronts has prompted economists to rein in their U.S. growth forecasts, making European equities more attractive.
The STOXX 600 has risen 8.2% this year compared with a 2.1% drop in the U.S. benchmark S&P 500 index. Germany's benchmark index outperformed most of its regional peers with its 15% rise in 2025.
Mining stocks led gains among sectors on Monday, firming 1.3% on higher copper prices. J.P.Morgan also double upgraded the European mining sector to "overweight" from "underweight".
On the flipside, the food and beverages was the biggest laggard on the main index and fell 1.4%.
Telecommunications lost over 1%, dragged by a 4.4% decline in Vodafone after BofA Global Research downgraded the mobile group's stock to "neutral" from "buy".
Among stocks, Bayer slid 6.3% after the seeds and pesticides maker was ordered by a U.S. jury to pay about $2.1 billion to a plaintiff who claimed the company's Roundup weed killer caused his cancer.
Saab jumped 4.5% after UBS upgraded the defence company's stock to "buy" from "neutral".
RWE shares gained 1.5% as activist investor Elliott disclosed a stake in Germany's biggest utility and urged the firm to increase its 1.5 billion euro ($1.6 billion) share buyback programme.
(Reporting by Medha Singh in Bengaluru; Editing by Eileen Soreng, Shounak Dasgupta and Ed Osmond)
The article discusses European shares ending flat due to investor caution over tariff uncertainties.
Mining stocks led gains with a 1.3% rise due to higher copper prices.
Bayer's stock dropped 6.3% after a U.S. jury ordered the company to pay damages related to its Roundup weed killer.
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