European Shares Stir as U.S.-EU Trade Deal Looms

European shares saw modest activity on Monday morning as the market digested mixed corporate earnings reports, while anticipating a trade agreement between the United States and European Union. The pan-European STOXX 600 index declined slightly by 0.01%, registering at 546.97 points as of 0719 GMT.

U.S. Commerce Secretary Howard Lutnick expressed optimism on Sunday about securing a trade deal with the EU before the August 1 tariff deadline approaches. He mentioned significant potential for reaching an accord following discussions with European negotiators. Consequently, European basic resources stocks surged by 2.6%, leading sectoral gains, while the automobile sector saw a 0.3% decline.

In stock performance, Ryanair emerged as a standout, registering a 5.8% increase, following a more than doubling of net profit in the April-June quarter. In contrast, Stellantis shares fell 2.4% after announcing an expected net loss of 2.3 billion euros for the first half of 2025. Additionally, anticipation builds as Chinese and European leaders prepare for key diplomatic meetings later this week.

(With inputs from agencies.)