LONDON — European markets experienced a downturn on Monday as investors reacted to escalating geopolitical concerns in the Middle East and the potential for renewed transatlantic trade disputes.
The pan-European Stoxx 600 slipped 0.4% by 1:45 p.m. in London (8:45 a.m. E.T.), erasing earlier gains. Major exchanges in Frankfurt, Paris, and Milan all registered losses, with regional stocks largely following suit. The FTSE 100 in London is closed due to the U.K. early spring bank holiday.
Nokia saw a significant surge, climbing 7.7% in early afternoon trading, bringing its year-to-date gains to over 100%, following Inseego's announcement on Thursday to acquire Nokia’s fixed wireless access business.
However, European automakers faced pressure, falling approximately 1% after U.S. President Donald Trump signaled his intention to increase tariffs on cars and trucks from the European Union to 25%. The European Commission stated it is evaluating its response options.
Auto parts manufacturer Continental led the declines on the Stoxx 600, dropping 4.2%, while Mercedes Benz shed 2.4% and Volkswagen traded 1.5% lower.
This tariff threat emerges despite a Supreme Court ruling in February that invalidated significant portions of Trump's previous tariff agenda.
Simultaneously, President Trump unveiled 'Project Freedom,' a plan to facilitate the passage of ships through the Strait of Hormuz, potentially involving 15,000 troops, guided missile destroyers, and 100 aircraft.
The United Kingdom Maritime Trade Operations reported an incident early Monday involving a vessel struck by projectiles north of Fujairah in the United Arab Emirates.
Oil prices rose, with Brent crude increasing 2.2% to $110.57 a barrel and West Texas Intermediate climbing 1.3% to $102.94.
