Finance
European shares see monthly declines as markets eye trade developments
Published by Global Banking & Finance Review®
Posted on June 30, 2025
3 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 30, 2025
3 min readLast updated: January 23, 2026
European stocks fell in June due to trade talks and tariff concerns. The STOXX 600 index dropped 0.4% as geopolitical tensions affected markets.
By Sukriti Gupta, Sanchayaita Roy and Shashwat Chauhan
(Reuters) -European stocks ended lower in broad-based declines on Monday, closing out June with monthly losses as investors monitored for signs of any progress on U.S. trade talks as the July tariff deadline loomed large.
The pan-European STOXX 600 index closed 0.4% lower, clocking a more than 1% decline for the month.
Global equities suffered losses this month as rising geopolitical tensions in the Middle East saw investors shy away from risky assets such as stocks.
Despite June's losses, the benchmark saw a second successive quarterly rise, rebounding sharply from its April lows when U.S. President Donald Trump's reciprocal tariffs roiled financial markets.
Since then, the index last stood more than 7% higher in the first half of the year, compared to a more than 5% rise in the U.S. S&P 500.
On Monday, heavyweight health care were the biggest drags, while miners also lagged with a 1.1% fall.
Germany's Bayer fell 5.3% after the U.S. Supreme Court asked the Trump administration for its views on the pharmaceutical group's bid to sharply limit lawsuits claiming its Roundup weedkiller causes cancer and potentially avert billions of dollars in damages.
In the latest on the global trade front, Canada scrapped its digital services tax targeting U.S. technology firms just hours before it was due to take effect, while the British government said the trade deal that reduced U.S. tariffs on UK cars and aircraft parts has come into effect.
Focus has been shifting to the July 9 deadline for countries to reach deals with the United States.
"Our baseline expectation is that the administration will seek to roll forward the July 9 deadline, citing at least some progress on trade deals and extending it to allow more time on the clock for these bilateral talks to progress," Morgan Stanley analysts said.
In other stock moves, European renewable energy stocks including Vestas, EDP Renovaveis and Orsted slid as a bill in the U.S. Senate - which includes provisions to phase out solar, wind and energy tax credits by 2028 - progressed further.
European banks slid 0.3%, with Germany's Deutsche Bank leading declines with a 3.2% fall.
On the data front, preliminary estimates showed German inflation eased in June, while Italian EU-harmonised consumer prices (HICP) rose a preliminary 0.2% month-on-month in June.
Among stocks making headlines, Zalando rose 3.1% after Jefferies initiated coverage of the German online retailer at "buy".
(Reporting by Sukriti Gupta, Sanchayaita Roy and Shashwat Chauhan in Bengaluru; Editing by Vijay Kishore and Aidan Lewis)
European stocks ended lower, closing out June with monthly losses, as the pan-European STOXX 600 index recorded a decline of more than 1% for the month.
The decline was attributed to rising geopolitical tensions in the Middle East and uncertainty surrounding U.S. trade talks, which led investors to shy away from risky assets.
The health care sector was one of the biggest drags on the market, with notable declines from companies like Bayer, which fell 5.3%.
The July 9 deadline is crucial as countries are expected to reach trade deals with the United States, and there are expectations that the administration may seek to extend this deadline.
Canada scrapped its digital services tax targeting U.S. technology firms just hours before it was set to take effect, reflecting ongoing trade negotiations.
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