European shares steady as investors assess Middle East progress; automakers slide

EUROPEAN shares were muted on Monday, as investors watched for signs of progress in Middle East talks, while European automakers were under pressure following a potential US tariff hike.

US President Donald Trump said on Friday he would raise tariffs on cars and trucks from the European Union to 25 per cent this week from the prior 15 per cent, saying the bloc had not complied with its trade deal.

German automakers led the fall, with BMW and Mercedes dropping over 2 per cent each, while Porsche and Volkswagen were off 1.5 per cent each.

Truckmakers Daimler Truck and Traton were both marginally down. The automobiles index fell 1.6 per cent.

The pan-European Stoxx 600 was flat at 611.98 points as of 0704 GMT, after posting a modest gain last week. Most regional bourses were muted with Germany’s DAX little changed. London markets were closed for a public holiday.

European equities still remain about 4 per cent away from their pre-war trading levels, while Wall Street and global equities have rebounded on Artificial Intelligence-driven optimism, with the region’s energy dependence weighing on shares.

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Among early movers, Thyssenkrupp gained 1.2 per cent. The German industrial giant paused talks to sell its steel unit to India’s Jindal Steel. REUTERS