(RTTNews) - European stocks are showing weakness on Monday amid renewed concerns about tariffs after U.S. President Donald Trump threatened that he will hike levies on European cars and trucks to 25% from the existing 15% rate, saying the European Union had failed to fully comply with a trade agreement negotiated with the US.
Lingering concerns about the situation in the Middle East weigh as well on sentiment. Iran's navy has reportedly said that it has prevented US ships entering the Strait of Hormuz, after Trump said the US military would help guide stranded vessels today.
Meanwhile, US has denied Iranian state media claims that a US vessel was hit by missiles from Iran, adding, "No U.S. Navy ships have been struck."
The pan European Stoxx 600 was down 2.72 points or 0.44% at 608.56. Germany's DAX was down 39.93 points or 0.16% at 24,252.45 a little while ago. France's CAC 40 was down 78.37 points or 0.97% at 8,036.47.
The UK market is closed today for Bank Holiday.
In the German market, Continental is down 4.6%. RWE is lower by about 3%, while Scout24, Allianz, Volkswagen, MTU Aero Engines, Deutsche Post, Vonovia, BMW, Mercedes-Benz, Commerzbank and Deutsche Telekom are down 2%-2.5%.
Porsche Automobil Holding, Adidas, BASF and Deutsche Bank are also notably lower.
Rheinmetall is climbing up 2.75%. Brenntag is gaining 2%, while SAP, Infineon, Siemens Energy and Symrise are up 1%-1.5%.
In the French market, Eurofins Scientific, EssilorLuxottica, Danone, Societe Generale, Hermes International, AXA and Sanofi are down 2%-3%.
Saint Gobain, Safran, L'Oreal, Kering, Bouygues, Accor, Veolia Environment, Engie, Air Liquide, Renault, Unibail Rodamco and Schneider Electric are also notably lower.
STMicroelectronics is rising more than 5.5%. Teleperformance is up 3.2%, while Airbus, Publicis Groupe and Pernod Ricard are gaining 1%-1.3%.
In economic news, a report from S&P Global showed the S&P Global Germany Manufacturing PMI was revised slightly higher to 51.4 in April 2026 from a preliminary of 51.2, compared to a 46-month high of 52.2 in March.
Eurozone investor sentiment improved unexpectedly in May, driven by investor expectations that the conflict with Iran would not escalate further, a survey conducted by the behavioral research institute Sentix showed Monday. The investor sentiment index rose to -16.4 in May from -19.2 in April. The score was forecast to fall to -20.9.
The euro area factory activity expanded at its strongest pace in nearly four years in April as manufacturers front-loaded their orders due to fears of the war-induced price increases and supply shock, final data from S&P Global showed Monday. The manufacturing Purchasing Managers' Index rose to a 47-month high of 52.2 in April, in line with flash estimate, from 51.6 in March.
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