Source: Sharecast
The pan-European Stoxx 600 closed down 0.46% at 544.05, with most major indices in the red.
Germany’s DAX dropped 1.15% to 24,027.17 and France’s CAC 40 slipped 0.69% to 7,744.41.
London’s FTSE 100 outperformed, rising 0.12% to finish at 9,023.81.
The divergence came after US markets hit fresh records on Monday, with the S&P 500 and Nasdaq reaching new highs, though closing off their intraday peaks.
Investor nerves were rattled by US president Donald Trump’s looming 1 August deadline, after which Washington could impose a 30% tariff on EU imports if no agreement was reached.
“Fears about trade agreements before the 1 August deadline, alongside companies' ability to endure the tariff conflict, are testing market resilience,” said Patrick Munnelly, partner at Tickmill Group.
He added that while Asian stocks remained resilient, global markets were now watching for signals from Washington and earnings from major firms like Tesla and Alphabet.
Among individual stocks, Norway’s Norsk Hydro gained after posting a 33% rise in core profit, beating forecasts, helped by stronger aluminium and energy prices.
In contrast, Swiss lender Julius Baer fell after missing first-half net profit estimates, and Givaudan declined on weaker-than-expected sales, blamed in part on the strong Swiss franc.
Sartorius Stedim Biotech also dropped following disappointing half-year results.
In the UK, market sentiment was dented by government borrowing figures, which exceeded expectations and pushed 10-year gilt yields up.
“That’s the market’s way of saying it isn’t impressed with the state of public finances,” said Russ Mould, investment director at AJ Bell.
He added that the rise in yields hurt housebuilders, “desperately waiting for rates to come down,” and also weighed on banks amid fears of tax hikes in the Autumn Budget.
Admiral was in the red on the FTSE 100 after the Financial Conduct Authority warned insurers over poor industry practices, highlighting concerns over high monthly premium costs and mishandled claims.
Reporting by Josh White for Sharecast.com.