by Diana Mandia

(Reuters) – European scholarships finished down on Monday, investors opting for caution while the deadline to achieve an agreement on American customs duties is approaching and trade discussions return to the stage.

In Paris, the CAC 40 lost 0.33% to 7,665.91 points. In Frankfurt, the Dax fell 0.44% and in London, the FTSE 100 abandoned 0.43%.

The Eurostoxx 50 index ended up 0.31%, the FTSEUROFRST 300 from 0.46%and the Stoxx 600 of 0.37%.

The CAC 40 and the Stoxx 600 gained 3.8% and 6.7% respectively during the first half, despite the shock announcements of the American president Donald Trump in April concerning massive customs rights against his main business partners.

The European Commerce Commissioner, Maros Sefcovic, was expected Tuesday in Washington in order to continue negotiations on customs duties with the American administration, which set the deadline for a commercial agreement for an increase in surcharges on EU imported goods, from medicines to vehicles.

Brussels, however, wanted to specify on Monday that European digital regulations would not be changed in the context of commercial talks, while Washington believes that it unjustly targets American technological companies.

Investors are also on the lookout for any signing of the negotiation period, but the American secretary to the Treasury, Scott Bessent, warned Monday that countries could still be confronted with much higher customs duties on July 9, even if they negotiate in good faith, adding that any possible extension would be the responsibility of President Donald Trump.

The economic adviser of the White House, Kevin Hassett, announced a resumption of negotiations with Canada after Ottawa canceled his tax on digital services, which had served as a pretext for Donald Trump to end the discussions between the two neighbors last Friday.

Beyond the commercial policy, investors monitor the annual European Central Bank (ECB) which is held this week in Sintra, Portugal, and await Tuesday the publication of preliminary inflation figures in the euro zone for the month of June after those of Germany have shown an unexpected slowdown.

VALUES

In Paris, Worldline rebounded by 15.6% after having tumbled on Friday with the opening of a Belgian justice survey on a local subsidiary.

Gecina took 1.4% after Deutsche Bank noted her recommendation on the value to “buy” against “keep”.

Elsewhere in Europe, renewable energy companies have reclaimed, investors monitoring the evolution of the tax on tax reductions and expenditure in the United States, which could gradually eliminate solar, wind and energy tax credits by 2028.

Vestas vws.co lost 7.9%, EDP Renovaveis 4.2%, and Orsted 3.7%.

A Wall Street

At the time of the fence in Europe, the Dow Jones advances 0.31%, the Standard & Poor’s 500 of 0.15%and the Nasdaq Composite of 0.12%.

The indicators of the day

Inflation slowed down 2% in Germany in June, show the preliminary data published Monday by the Federal Statistics Office, contradicting forecasts of a slight increase in prices.

Retail sales, for their part, unexpectedly fell in May over a month in the first economy in the euro zone, which hoped for hopes on the country’s growth in the second quarter.

In the United Kingdom, the economy accelerated by 0.7% in the first quarter of 2025, as expected by economists questioned by Reuters and confirming a preliminary estimate, according to figures published Friday by the National Statistics Office (ONS).

In the euro area, business loan growth has slowed down in May, according to data published Monday by the European Central Bank (ECB).

Changes

The dollar depreciated on Monday to reach its lowest level for almost four years compared to the euro, while the markets strengthen their bets on a faster than expected reduction in interest rates by the Federal Reserve (Fed).

The greenback loses 0.49% against a basket of reference currencies, while the European currency advances from 0.4% to 1.1766 dollars.

RATE

Bonds in the euro zone bonds were rather stable on Monday.

The yield of the German Bund at ten years has finished almost unchanged at 2,5,960%. The two years fell from almost a basic point to 1.8570%.

In the United States, yields are slightly dropped, investors focus on the series of economic data scheduled for this week and the growing expectations of an acceleration of the flexibility of the Fed monetary policy.

The yield of ten -year -old Treasuries fell from 2.4 base points to 4.2592%. The two -year -old loses 0.9 base point at 3.7315%.

OIL

Oil prices fell backward tensions in the Middle East and forecasts to increase OPEC+ production in August.

Brent cedes 0.28% to 67.58 dollars per barrel and American brut (West Texas Intermediate, WTI) 1.21% to 64.73 dollars.

(Written by Diana Mandiá, edited by Blandine Hénault)

Copyright © 2025 Thomson Reuters