European stock markets opened lower on Monday as renewed uncertainty over U.S. trade tariffs dampened investor confidence at the start of the week.
By 03:02 ET (08:02 GMT), Germany’s DAX index had declined 0.6%, France’s CAC 40 slipped 0.2%, and the UK’s FTSE 100 edged down 0.1%.
Trump tariffs weigh on European market sentiment
Global equities had rallied late Friday after the U.S. Supreme Court struck down most of the tariffs imposed last year by President Donald Trump. The court ruled that the emergency powers cited did not authorize the sweeping trade measures.
However, over the weekend, President Donald Trump introduced a new 10% universal tariff under a separate legal framework and later increased it to 15%. The new levy could remain in place for up to five months while the administration seeks a longer-term solution.
The back-and-forth approach to U.S. trade policy has unsettled financial markets. European Central Bank President Christine Lagarde warned that frequent changes to trade rules create instability for businesses and investors. She emphasized that companies require predictable conditions before committing to investment and expansion decisions.
Eurozone confidence and German Ifo in focus
Despite Monday’s pullback, European equities had recently shown resilience. The STOXX 600 index reached a record high last week, supported by solid corporate earnings and improving economic data.
Figures released on Friday indicated that Eurozone business activity accelerated faster than expected, with manufacturing returning to growth for the first time since October. Analysts suggested this could mark a potential turning point for the sector.
Investors are now awaiting Germany’s Ifo business climate survey, which is expected to show further improvement in sentiment within the Eurozone’s largest economy.
Nvidia earnings and key European corporate updates
Earnings season continues across Europe, with major companies such as HSBC, Deutsche Telekom, Iberdrola and Schneider Electric set to report results. However, global attention is focused on U.S. chipmaker Nvidia, which will release earnings on Wednesday. The results are expected to provide further insight into artificial intelligence demand and its broader impact on global markets.
In corporate news, Dutch postal operator PostNL reduced its annual dividend by 43% and warned that free cash flow could turn negative again in 2026, despite a 2.2% increase in revenue to €3.32 billion.
Spanish dermatology company Almirall reported strong performance from its eczema treatment Ebglyss, helping annual revenue exceed €1 billion for the first time.
Meanwhile, Rolls-Royce is reportedly urging the UK government to support a £3 billion aircraft engine development project, as the company seeks to re-enter the short-haul aviation market.
Oil prices decline ahead of US-Iran nuclear talks
Oil prices fell sharply on Monday, reversing part of last week’s gains as investors assessed the potential for renewed diplomacy between the United States and Iran.
Brent crude futures dropped 1.3% to $70.39 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 1.4% to $65.55 per barrel.
Both benchmarks had surged nearly 6% last week amid concerns about possible U.S.-Iran tensions and a surprise decline in U.S. crude inventories.
A third round of U.S.-Iran nuclear talks is expected to take place in Geneva on Thursday. Hopes of diplomatic progress have reduced fears of supply disruptions from the Middle East. Iran, a key member of OPEC, holds some of the world’s largest proven oil reserves, making any shift in its export outlook significant for global energy markets.
