BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European shares were subdued on Tuesday, with disappointing earnings and trade anxiety keeping investors on edge.
Media reports suggest that the European Union is preparing to respond with a suite of retaliatory measures under its Anti-Coercion Instrument (ACI) following U.S. President Donald Trump's threat to impose a 30 percent tariff on EU goods from 1 August.
Elsewhere, the prospect of an interim trade deal between the U.S. and India before the August 1 deadline have dimmed due to persistent disagreements over key agricultural and dairy products.
In economic releases, the U.K. budget deficit widened sharply in June, data from the Office for National Statistics showed.
Public sector net borrowing rose by GBP 6.6 billion from the previous year to GBP 20.7 billion in June. This was bigger than the GBP 17.1 billion shortfall forecast by the Office for Budget Responsibility.
Moreover, it was the second-highest borrowing in any June since monthly records began in 1993.
The pan European STOXX 600 dropped 0.4 percent to 544.46 after ending flat with a negative bias on Monday.
The German DAX fell 0.7 percent, France's CAC 40 shed 0.4 percent and the U.K.'s FTSE 100 was marginally lower.
Dutch paint and coating maker Akzo Nobel NV tumbled 3 percent after it reported lower net profit and sales for the second quarter due to adverse currency headwinds and subdued markets.
Swedish engineering group Alfa Laval fell about 1 percent as Q2 orders and sales missed forecasts.
Integrum AB shares soared 110 percent. The independent bid committee of the company has decided to recommend that the shareholders of the company accept OsteoCentric Oncology and Bone Anchored Prostheses, LLC's public takeover offer.
Swiss bank Julius Baer declined 1 percent as it reported a sharp decline in profit due to higher loan provisions.
Fragrance and flavor maker Givaudan plummeted 5.4 percent after reporting negative free cash flow of CHF 16 million for the first half of 2025.
Sartorius AG, a German pharmaceutical and laboratory equipment supplier, plunged 7.3 percent.
The company confirmed its guidance for 2025 but noted that its sales revenue and margin forecast does not include possible effects of tariffs or related mitigating and corrective measures.
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