Flat European Shares Amid Trade Deal Anticipation and Earnings Mix
European shares remained flat as investors navigated mixed corporate earnings and anticipated a potential trade deal between the U.S. and EU. While basic resources and travel sectors gained, banks slipped. Notably, Ryanair's profits doubled, boosting airline stocks, and miners tracked stronger metals prices. Key meetings and tech results are highly anticipated.

European shares experienced little movement on Monday, remaining unchanged as investors sorted through varied corporate earnings while waiting for a potential trade agreement between the United States and the European Union.
The pan-European STOXX 600 index inched up by 0.03% to 547.15 points as of 0831 GMT. U.S. Commerce Secretary Howard Lutnick expressed confidence on Sunday that a trade agreement between Washington and the EU could be reached, with August 1 looming as a firm deadline for tariffs.
Investors closely watch the U.S.-EU trade discussions, with the EU readying retaliatory strategies if talks with Washington break down. "There's total uncertainty on tariffs compared to some optimism for a deal, which could mitigate fears about their impact on corporate earnings," said Jochen Stanzl, CMC Markets' chief market analyst.
European basic resources rose 3.3%, leading sector gains, while travel and leisure increased 1.7%, and banks declined 0.7%.
Ryanair was among the top gainers in the STOXX 600 index after the low-cost airline reported more than double its quarterly profit, sending its shares surging 6.2%. This performance buoyed other airlines such as Lufthansa and EasyJet.
Major miners, including Glencore, Anglo American, and Antofagasta recorded gains between 3.3% and 4%, driven by rising metals prices. Boliden's stock jumped 5.9% after Berenberg lifted its rating to "buy" from "hold".
Belimo climbed 5.5% following its better-than-expected half-year profitability report. Conversely, Stellantis fell 1.2% after predicting a 2.3 billion euro ($2.68 billion) net loss for the first half of 2025.
Swedish defense firm Saab dropped 7.4% after soaring 16.4% last session, whereas European leaders prepare for talks with China on Thursday. The ECB survey indicated cautious optimism among Euro zone firms despite profit pressures, partly due to trade tensions.
Investors remain vigilant, awaiting the ECB's decision on keeping rates steady at 2.0% and key earnings from tech giants including Alphabet and Tesla this week.
(With inputs from agencies.)