Both the STOXX 50 and STOXX 600 slipped 0.2% on Tuesday, reversing early gains, as investors closely watched trade negotiations with the US ahead of the looming July 9 deadline for reciprocal tariffs. Bloomberg reported that the EU is open to a deal involving a 10% universal tariff on many of its exports, but is seeking concessions from the US on key sectors such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft. The EU’s trade chief is expected to lead a delegation to Washington this week in an effort to advance the talks, according to sources cited by Bloomberg.
On the data front, preliminary figures showed Eurozone inflation came in at 2% as expected, staying at the ECB’s target. Meanwhile, ECB Chief Economist Philip Lane stated that the central bank’s recent tightening cycle has concluded. On the corporate front, Nestle (-0.2%), Hermes (-0.4%), ASML Holding (-0.9%) and Novo Nordisk (-1.1%) booked losses while SAP (0.3%) and LVMH (2.1%) traded in the green
