European shares pressured by Trump's new tariff threats
The continent-wide STOXX 600 was down 0.5% as of 0759 GMT, after recording about a 4% gain in May.
Late on Friday, Trump said he planned to increase tariffs on imported steel and aluminum to 50% from 25%, to which the European Union said it was prepared to retaliate.
Steel companies such as ArcelorMittal and Aperam were down about 1% each. Automakers saw the biggest impact, with Milan-listed Stellantis down 3%. Mercedes-Benz, BMW and Volkswagen fell between 1.4% and 2%. The sector dipped 1.6%.
Luxury stocks, among Europe's exports, also dipped with the broader gauge down 1.6%. An index measuring volatility in the market was up 1.7 points at 20.88, its highest in a week. 'The latest announcement renews tensions... it's also an indication that the trade negotiations may not be going toward the right direction,' said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
'The trade tensions have a very direct impact on the luxury sales, because for the biggest exports of the major European companies, America is one of the biggest markets.' Most regional bourses were trading lower, with Germany's DAX down 0.6%.
However, oil stocks tracked prices of the commodity sharply higher, after producer group OPEC+ decided to increase output in July by an amount which is less than feared by many.
An index tracking defence companies also ticked higher as tensions between Russia and Ukraine flared again over the weekend, but representatives were due to meet on Monday.
Among other stocks, Sanofi agreed to buy US-based Blueprint Medicines Corporation, paying $129 per share, representing an equity value of approximately $9.1 billion. Shares in the French pharma group fell 1.2%. Elsewhere, stocks in Poland fell 1.4%, after nationalist opposition candidate Karol Nawrocki won the second round of the country's presidential election.
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