European Shares Sway Amid New U.S. Trade Tariff Uncertainty
European shares reacted negatively on Monday due to uncertainty from U.S. trade policy changes announced by President Trump. A weekend decision to increase tariffs from 10% to 15% overshadowed previous market highs, creating apprehension about trade agreements. Italy's Enel saw gains, while Johnson Matthey's shares dropped sharply.
European shares experienced a downtrend on Monday as a new wave of uncertainty related to U.S. trade policy reverberated through the markets. President Donald Trump's announcement of a heightened global tariff rate sowed doubts among investors.
The pan-European STOXX index, which had posted a record high last week following a U.S. Supreme Court decision that nullified previous tariffs, fell 0.3% to 628.62 points by 0815 GMT. Germany’s DAX index registered the most significant decline of 0.7%, driven by sharp drops in the technology sector.
Amidst the turmoil, Italy's largest utility, Enel, bucked the trend by posting gains of 3.4% after declaring an increase in capital expenditure focusing on renewable energy in Europe and the U.S. In contrast, Johnson Matthey's stock plummeted 14% after reducing the sale price of its catalyst technologies unit to Honeywell, following performance issues in fiscal 2025.
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