European Stocks Slide Amid US-EU Tariff Tensions Ahead August Deadline

European stocks showed cautious trading early in the week amid mounting concerns over unresolved US-EU trade negotiations ahead of the August 1 tariff deadline. Despite ongoing talks, no breakthrough has been reached, with the EU preparing potential retaliatory measures including tariffs on US goods if the US proceeds with a 30% tariff on European imports. Key indices such as the FTSE 100, CAC 40, and DAX displayed modest declines or remained flat, while sectors like automotive were notably affected, with Stellantis warning of a €2.3 billion net loss and shares falling sharply. Conversely, companies like Ryanair and BP saw gains following strong earnings and leadership changes. Investors also remain focused on the European Central Bank's upcoming policy decision and major US tech earnings reports, which could influence market sentiment in the near term. Overall, uncertainty over trade tensions and economic outlooks continues to temper market enthusiasm across Europe and the US.