European Stocks Dip as U.S. Tariff Deadline Looms

European stocks saw modest fluctuations as investors weighed mixed corporate earnings and the upcoming U.S.-EU trade negotiations, with a 30% U.S. tariff on EU exports looming if no agreement is reached by August 1. The pan-European STOXX 600 index edged down 0.1%, led by losses in luxury and healthcare sectors, while mining and airline stocks gained, including Ryanair, which more than doubled its quarterly net profit. Automaker Stellantis projected a €2.3 billion first-half loss due to restructuring and U.S. tariffs, contributing to volatility in auto stocks. European officials signaled readiness to retaliate if talks fail, considering anti-coercion measures targeting U.S. services or public tenders. Industrials outperformed as automobiles lagged, and investors closely monitored earnings guidance for tariff-related risks. Analysts warn that the outcome of the trade talks could significantly impact European equities in the near term.