The European stock market had a mixed start to the new trading week. At the opening on Monday, there was little movement in the markets. However, one familiar market driver seems to be making an impact again. Donald Trump continues to diligently sign executive orders aimed at imposing additional tariffs on goods imported into the USA. This time, the focus is primarily on steel and aluminum. The countries most affected by these goods in terms of trade volume with the USA are Mexico, Canada, Brazil, and South Korea—so enthusiasm in these nations is likely to be limited.
Strong Retail Sector Pushes British Stock Market Higher
Unlike the US dollar, European stock markets did not react strongly to the new round of tariffs. It remains to be seen whether Europe will be directly affected by the tariff measures and how the markets will respond if that happens. However, investors in the UK’s FTSE 100 seem unfazed by the tariffs, instead celebrating strong retail sales figures. The British index rose by 0.7% on Monday, solidifying its upward trend with a new all-time high. The strongest performer in the index was BP, which gained over 7%, followed by Fresnillo, which saw an increase of more than 4.8%.
EuroStoxx Near 25-Year High
On Monday, the EuroStoxx 50 surged close to its 25-year high, further reinforcing the current downtrend, which remains fully intact. There are still no signs of excessive market greed, suggesting that the trend phase could remain stable. The argument that European stocks are still undervalued persists. The best-performing stock in the index was Vivendi, with a gain of 2.9%.
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.