European indices extend losses on trade, growth fears

European stock markets fell on Thursday for a fourth consecutive session, as fading hopes over trade deals with the United States and rising geopolitical tensions weighed on investor sentiment.

The pan-European STOXX 600 slipped 1.01 per cent by 10:17 GMT, with concerns mounting over the European Union’s ability to strike a deal before the July 8 deadline, when a pause on US tariffs is set to expire.

“The trade optimism is waning… The European Union will be one of the last to try to deal, and the July deadline might never be met,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

US President Donald Trump on Wednesday said he was open to extending the deadline but added it might not be necessary, as offer letters would be sent to countries within a week.

The remarks came after a limited agreement with China revived a trade truce, though many tariffs remain in place. Treasury Secretary Scott Bessent noted the EU had been slower to propose concrete steps but was now showing “better faith”.

France’s CAC 40 lost 0.72 per cent, Spain’s IBEX 35 fell 1.16 per cent, Germany’s DAX dropped 1.28 per cent, and the UK’s FTSE 100 edged down 0.17 per cent, pressured further by data showing Britain’s economy shrank in April by the most since October 2023.

Attribution: Amwal Al Ghad English, Reuters

Subediting: Y.Yasser