Major European Markets Close Weak On Tariff Jitters, Geopolitical Concerns

(RTTNews) - European stocks closed weak on Monday as rising trade tensions due to China and the U.S. accusing each other of violating trade agreement, and the Trump administration's announcement that it would double the tariffs on steel and aluminum imports to 50% from June 4th.

Lingering concerns about Europe-Ukraine conflict weighed as well on sentiment. Investors also digested regional economic data, and looked ahead to some crucial economic reports from the U.S. later in the week.

The pan European Stoxx 600 ended down 0.14%. Germany's DAX closed down 0.28% and France's CAC 40 drifted lower by 0.19% and the U.K.'s FTSE 100 crept up 0.02%. Switzerland's SMI closed 0.24% down.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Ireland, Norway, Portugal and Spain ended higher.

Finland, Greece, Iceland, Netherlands, Poland, Russia, Sweden and Turkiye closed weak.

In the German market, Daimler Truck Holding closed down 3.4%. Sartorius, Rheinmetall, Mercedes-Benz, BMW, Porsche, Beiersdorf, Volkswagen, Brenntag, Continental, Siemens Healthineers and Infineon lost 1.3 to 3%.

Zalando climbed nearly 2.5%. Fresenius, Siemens Energy, Bayer, Munich RE, Heidelberg Materials and Hannover Rueck gained 1 to 2%.

In the French market, Stellantis closed down 4.5%. Publicis Groupe, Renault, Edenred, Accor, Dassault Systemes, STMicroElectronics, Vivendi, Sanofi, Pernod Ricard and Hermes International lost 1 to 4%.

TotalEnergies rallied 2%. Vinci, Societe Generale, Thales, AXA, Veolia and Engie gained 0.8 to 2%.

In the UK market, Ashtead Group lost about 4%. WPP ended nearly 3% down. Taylor Wimpey, JD Sports Fashion, Spirax Group, Diploma, IMI, Melrose Industries, Coca-Cola Europacific Partners, Standard Chartered, Diageo, Barratt Redrow and AstraZeneca ended lower by 1 to 2.2%.

Shares of support provider for army and nuclear operations Babcock International Group gained more than 8% following the UK Government pleding fresh military spending to bolster the country's 'war readiness'.

IAG gained more than 3% after the British Airways opener launched the second tranche of its share buyback programme, amounting to 500 million euros. The second tranche will commence on June 2 and is expected to end no later than November 28.

IAG said that the launch follows the successful completion of the first tranche of 500 million euros on May 29. The entire buyback programme, which was initially announced on February 28, adds up to 1 billion euros.

Endeavour Mining gained nearly 7% and Fresnillo ended up 6%. Rentokil Initial, IAG, Legal & General, Antofagasta, Phoenix Group Holdings, Schroders, Marks & Spencer, Imperial Brands, Aviva, M&G and Games Workshop climbed 1 to 3.3%.

On the economic front, the UK factory sector shrank further in May as the weak global demand, trade tensions and rising cost burdens weighed on production and new orders, the purchasing managers' survey results from S&P Global showed.

The final manufacturing PMI rose to a three-month high of 46.4 in May from 45.4 in April. The reading was also above the flash estimate of 45.1. However, the score remained well below the neutral level of 50.0, suggesting contraction.

Euro area factory activity fell at the slowest pace in more than two years in May, signaling a gradual progress towards recovery, final results of the purchasing managers' survey from S&P Global showed.

The HCOB final manufacturing Purchasing Managers' Index rose to 49.4 in May, in line with the flash estimate, from 49.0 in April.

German manufacturers reported a third monthly rise in output in May, but overall business conditions remained weak. The HCOB factory PMI registered 48.3, down from April's 32-month high of 48.4. The flash reading for May was 48.8.

The French industrial economy almost stabilized, with its manufacturing PMI rising to a 28-month high. The index logged 49.8, which was only fractionally below the threshold and up from April's 48.7. The reading was above the flash estimate of 49.5.

Data from Nationwide Building Society showed UK house prices grew 0.5% on a monthly basis, in contrast to the 0.6% fall in April. Prices were expected to remain flat. Year-on-year, house price growth edged up to 3.5% from 3.4% in April.