European stock indices posted mixed results during today’s session, as markets remained within a narrow trading range due to the absence of strong catalysts. The STOXX 600 index held steady at 537.35 points, while Germany’s DAX saw a slight decline, France’s CAC 40 remained unchanged, and the UK’s FTSE 100 rose by 0.4% following the resumption of trading after a public holiday. These modest movements reflect prevailing investor hesitation ahead of key economic decisions expected later this week.
Concerns over trade tensions between the United States and China resurfaced after Beijing announced it was reviewing a U.S. proposal to resume tariff negotiations. However, optimism faded following U.S. President Donald Trump’s remarks about imposing 100% tariffs on foreign films, along with threats of new tariffs on pharmaceuticals within two weeks. These statements have reignited investor anxiety, particularly given the lack of any concrete deal or timeline.
The European healthcare sector appeared to be the most vulnerable to these pressures due to its reliance on exports to the U.S., which has led to a more cautious approach from investors in this crucial industry.
Against this backdrop, investor attention is now firmly fixed on the upcoming U.S. Federal Reserve meeting scheduled for Wednesday. While markets largely expect interest rates to remain unchanged, the tone of the Fed’s statement and its assessment of the economic impact of tariffs will be closely watched. Meanwhile, additional policy meetings from the Bank of England, Swedish Riksbank, and Norges Bank this week add to the monetary policy significance for markets.
On the corporate front, sector performance varied sharply. Shares of Vestas climbed 5% after the company reported an unexpected operating profit. In contrast, Philips fell by 1.4% after the Dutch health tech company lowered its profit margin forecasts due to tariff-related impacts. Continental shares rose 2.8% on the back of strong quarterly results, while Hugo Boss and Zalando both posted better-than-expected performances, which supported their respective stock prices.
In commodities, oil prices rebounded more than 2% after a sharp drop, following a surprise decision by OPEC+ to accelerate production increases beyond prior expectations. This move introduces a fresh wave of volatility in energy markets and may prompt traders to reassess their positioning in the short term.
