European Stocks Close Broadly Lower

(RTTNews) - European stocks closed broadly lower on Tuesday with investors awaiting Trump administration's trade negotiations with major countries in Europe and elsewhere ahead of the July 9 deadline for reciprocal tariffs.

Investors also digested the latest batch of economic data from the region. Dovish comments from officials of the European Central Bank helped limit markets' downside.

The pan European Stoxx 600 fell 0.21%. Germany's DAX lost 0.99% and France's CAC 40 edged down 0.04%, while the U.K.'s FTSE 100 closed up 0.28%. Switzerland's SMI gained 0.35%.

Among other markets in Europe, Czech Republic, Denmark, Finland, Ireland, Netherlands, Norway, Poland and Sweden ended weak. Russia and Spain edged down slightly.

Belgium, Greece, Iceland, Portugal and Turkiye closed higher.

In the UK market, Convatec Group closed down 5.7%. Rolls-Royce Holdings, Babcock International, Barclays, Standard Chartered, Melrose Industries, Natwest Group, The Sage Group and British American Tobacco ended lower by 1.3 to 3%.

Diageo climbed 3.75% and Whitbread advanced 3.4%. JD Sports Fashion, AstraZeneca, Glencore, Vodafone Group, Compass Group, WPP and Intercontinental Hotels gained 2 to 3%.

In the German market, Siemens Energy fell nearly 6%. Rheinmetall, MTU Aero Engines, Deutsche Bank and Heidelberg Materials lost 3.6 to 4.2%.

Daimler Truck Holding, Infineon, Munich RE, SAP, Siemens, Deutsche Boerse and Mercedes-Benz also closed notably lower. Adidas, Zalando and Bayer gained 3.5 to 4.2%. Puma, Merck, Symrise, RWE, E.ON, Sartorius, Beiersdorf, Vonovia, Henkel and Qiagen climbed 1 to 2.3%.

In the French market, Thales ended more than 5% down. Safran, Publicis Groupe, Airbus and Legrand lost 2 to 4%.

STMicroElectronics, ArcelorMittal, Vivendi, Saint-Gobain, Schneider Electric, BNP Paribas, AXA and Societe Generale closed lower by 1.2 to 2%.

Kering, LVMH and Pernod Ricard gained 5 to 6%. L'Oreal, Renault, Orange, Carrefour, Danone, Stellantis, Teleperformance and Sanofi moved up 1 to 3%.

In economic news, data from S&P Global confirmed the HCOB Germany Manufacturing PMI at 49 in June 2025, the highest since August 2022. New orders rose at the strongest pace since March 2022, led by increased demand both at home and abroad.

Meanwhile, Germany's seasonally adjusted unemployment rate held steady at 6.3% in June, remaining at the highest since September 2020. The number of unemployed rose by 11,000 to 2.972 million, less than the expected increase of 15,000.

The UK factory sector deteriorated at a slower pace in June as the decline in output, new orders, and employment moderated, the purchasing managers' survey results from S&P Global showed.

The final manufacturing PMI rose to a five-month high of 47.7 in June, as estimated, from May's nearly 18-month low of 46.4. However, the score remained below the neutral level of 50.0, suggesting contraction.

Data from the Nationwide Building Society showed UK house prices advanced 2.1% year-on-year in June, slower than the 3.5% increase seen in May. House price growth was expected to moderate to 3.3%.

Prices fell by more-than-expected 0.8% on a monthly basis, in contrast to the 0.4% gain in May. Economists had forecast a 0.2% fall. This was the biggest fall in more than two years.

Euro area consumer inflation expectations for the short and medium term eased in May as uncertainty over the economic outlook decreased, monthly survey data from the European Central Bank showed.

Median expectations for inflation over the next 12 months fell 0.3 percentage points to 2.8% and the outlook for three years ahead eased by 0.1 percentage points to 2.4%, the monthly ECB Consumer Expectations Survey revealed.

Meanwhile, expectations for inflation over the next five years were unchanged at 2.1% for the sixth month in a row, the ECB said.

Data from Eurostat showed that according to flash estimate, Eurozone inflation rose slightly in June on services costs. Annual inflation climbed to 2% in June from 1.9% in May and also matched expectations.

Core inflation that excludes energy and food held steady at 2.3% in June, as expected. Month-on-month, the HICP gained 0.3%. Final data is due on July 17.

Data from S&P Global showed that the HCOB France Manufacturing PMI dropped to 48.1 in June 2025 from 49.8 in May, but revised above initial estimates of 47.8. This marked the steepest contraction in four months.