European Stocks Close Lower On Trade Deal Concerns, Some Weak Earnings Updates

(RTTNews) - European stocks closed broadly lower on Friday, weighed down by concerns about the progress of trade negotiations, and some disappointing earnings updates. Investors also digested a slew of economic data from the region.

Data showing a less than expected increase in retail sales, and a drop in consumer sentiment weighed on U.K. stocks.

European Union officials are voicing optimism about a possible trade deal with the United States, but U.S. President Donald Trump's position is seen to have hardened ahead of the August 1 deadline.

The member states adopted on Thursday the list of countermeasures targeting €93 billions' worth of U.S. products that will come into effect on August 7 in case the talks fail.

The pan European Stoxx 600 ended down 0.24%. The U.K.'s FTSE 100 and Germany's DAX closed lower by 0.26% and 0.41%, respectively. France's CAC 40 ended 0.17% up, and Switzerland's SMI settled 0.75% down.

Among other markets in Europe, Belgium, Greece, Netherlands, Norway, Poland, Portugal, Russia and Turkiye closed weak.

Czech Republic, Denmark, Finland, Iceland and Sweden ended higher, while Austria, Ireland and Spain closed flat.

In the UK market, 3i Group, Informa, St. James's Place, RightMove, Fresnillo, Convatec Group and Glencore closed down 1.3 to 3%.

Natwest Group closed stronger by about 3.5% after upgrading its full-year outlook and launching a share buyback program.

Ashtead Group, Entain, Mondi, Centrica, Beazley, Lloyds Banking Group, The Sage Group, BT Group, Diageo and Scottish Mortgage gained 1 to 2%.

In the German market, Puma tanked nearly 16%. The sportswear manufacturer slashed its earnings forecast for the year, citing weak demand for its products and growing concerns about the potential impacts of U.S. tariffs.

MTU Aero Engines, Vonovia, Fresenius Medical Care, Deutsche Boerse, Deutsche Bank, Sartorius, Hannover Rueck, Symrise and Deutsche Telekom lost 1 to 2%.

Volkswagen recovered after a weak start and closed higher by about 4.5%. The stock gained despite the company reporting a sharp drop in second-quarter profit and lowering its 2025 financial forecast.

Porsche rallied 3.7%, while BMW and Mercedes-Benz gained 2.8% and 2.6%, respectively.

In the French market, Michelin closed down 3.3%. Publicis Groupe, Airbus, STMicroElectronics and Schneider Electric also ended notably lower.

Carrefour climbed about 5.5%. The company reported net sales of 21.3 billion euros in the second quarter of 2025, marking a modest increase from the 20.8 billion euros recorded in second quarter 2024. For the first half of 2025, net sales rose 2.8% to 41.8 billion euros compared to 40.6 billion euros in the same period last year.

Kering, Eurofins Scientific and LVMH gained 4 to 4.5%. Pernod Ricard, Stellantis, Edenred, Renault, Teleperformance, Hermes International, Dassault Systemes, EssilorLuxottica and Accor closed higher by 1 to 3%.

In economic news, data from the Office for National Statistics showed UK retail sales recovered in June as warm weather boosted food and non-food store sales. However, the rise was less than economists' forecast.

Retail sales grew 0.9% on a monthly basis, in contrast to the revised 2.8%drop in May. However, this was weaker than economists' forecast of 1.2% gain.

Excluding auto fuel, retail sales advanced 0.6%, reversing a 2.9% drop in May. Economists had forecast an increase of 1.2%.

A report from Gfk Group said that the GfK Consumer Confidence Index for the UK edged down to -19 in July 2025 from -18 in June, slipping from a six-month high as households grew increasingly cautious amid rising concerns over taxes and inflation.

The Ifo Business Climate Index for Germany edged up to 88.6 in July, from 88.4 in June, marking the highest reading since May 2024.

The report from the Ifo Institute also showed the current assessments index came in with a score of 86.5 for July, compared to 86.2 in June. The business expectations index came in at 90.7 for July, up from 90.6 a month earlier.

French consumer confidence improved marginally in July, monthly survey results from the statistical office INSEE showed. The consumer sentiment index rose to 89 in July from 88 in the previous month. The score was expected to remain unchanged at 88.

The survey showed that assessment about personal financial situation, both past and future, improved slightly in July with each indices rising one point to -23 and -13, respectively.