21.08.202512:05:17UTC+00European Stocks Hold Losses on Trade Updates

European stock markets experienced continued downturns, influenced by rising bond yields across the Eurozone. Investors were evaluating developments in EU-US trade relations, recent economic data, and their implications for interest rates. The STOXX 50 index declined by 0.5% to settle at 5,440, marking its second consecutive drop, while the STOXX 600 dipped 0.4% from yesterday's five-month peak, landing at 557. Progress was made in formalizing the EU-US trade agreement, which would implement a 15% tariff on EU goods entering the US, specifying pharmaceuticals, automobiles, and metals as affected sectors rather than subjecting them to the higher Section 232 tariffs. BMW, Mercedes Benz, Sanofi, and Bayer saw slight declines below their previous standings. Additionally, the Eurozone's Purchasing Managers' Index (PMI) surprisingly increased to a 15-month peak in August, driven by renewed momentum in the manufacturing sector. This suggests a degree of resilience against protectionist pressures from key trading partners, and bolsters the stance of more hawkish members on the European Central Bank's Governing Council due to the uptick in pricing observed in the survey.