European Stocks Dip Amid Trade Tensions and Geopolitical Concerns

On Monday, European stocks closed lower, continuing a downward trend for June as investors kept a close eye on U.S. trade negotiations amid rising geopolitical tensions. The pan-European STOXX 600 index ended the day 0.4% lower, culminating in a month marked by declines due to wary investors shunning riskier assets.

Despite the June setback, the benchmark achieved a second consecutive quarterly rise, recovering significantly from April lows caused by U.S. President Donald Trump's tariffs. Over the first half of the year, the index was up more than 7%, outstripping the U.S. S&P 500's 5% rise.

The health care and mining sectors were notable drags on the STOXX 600 on Monday. Bayer's shares dropped 5.3% after the U.S. Supreme Court sought the Trump administration's input on the company's appeal to reduce liability over its Roundup weedkiller. Meanwhile, Canadian and British developments influenced global trade dynamics, with Canada retracting a digital services tax targeting U.S. tech firms, and the UK implementing a trade deal reducing U.S. tariffs on various goods.

(With inputs from agencies.)