European indices recorded collective declines at the opening of trading today, Friday, July 4th, the closing session of the week, with the absence of US markets celebrating Independence Day. Market fears are rising again regarding the approaching US tariff truce on July 9th, with no agreement reached with more than 100 countries. Trump announced that his administration would begin sending letters to countries on Friday specifying tariff rates on their imports to the United States, dampening risk appetite in European markets.
The European Union, India, Japan, and nine other countries are conducting last-minute negotiations with Washington to reach an agreement after Trump reached trade agreements with China, India, Vietnam, and the United Kingdom. Meanwhile, the President of the European Commission indicated in her statements on Thursday that it is impossible to reach an agreement with the United States before July 9th, given the wide scope of trade exchange between Brussels and Washington. In economic data, new manufacturing orders in Germany, the eurozone’s largest economy, fell for the first time after four months of growth in May, declining by 1.4% month-on-month, according to data from the German Statistical Office released this morning. This followed a revised 1.6% growth in April, falling short of expectations for a 0.1% decline. Orders rose by 6.3% year-on-year.
Conversely, French manufacturing production fell by 0.5% in May, compared to a 1.4% decline in April, confounding expectations for a 0.4% growth.
The UK FTSE 100 index fell by approximately 0.25% to 8,801 points, while the German DAX index fell by approximately 0.64% to 23,779 points. The French CAC 40 index fell by approximately 0.79% to 7,693 points. The STOXX Europe 600 index fell by about 0.59%, trading at 540.54.
Mining stocks led the declines, falling 1.1%, while technology stocks fell by 0.8%.
Siemens and Zalando led the declines on the DAX, losing more than 1.5%, while Loomis AB and Vestry Group led the declines on the STOXX Europe 600, losing more than 3%.
French beverage stocks fell after reports indicated that the European Union would impose tariffs on EU brandy of up to 34.9% for five years, starting July 5. Shares in Pernod Ricard and Remy Cointeau fell by more than 3%.