On Monday, European stock markets opened the week with a decline, breaking the May upward trend. The reason was new statements by former US President Donald Trump about the possible introduction of new tariffs that could exacerbate global trade disputes. As Reuters notes, this immediately affected the dynamics of quotations on leading European exchanges.

The broad European market index STOXX 600 fell by 0.5% after growing by 4% during May. Germany's DAX lost 0.6%, which also reflects investors' concerns about new restrictions on global trade. The decline was observed in all key sectors, in particular in the metallurgy, automotive industry and luxury goods segment.

Companies operating in the metallurgical sector also felt the pressure: ArcelorMittal and Aperam shares fell by about 1% each. At the same time, the largest losses were recorded among automakers. On the Milan Stock Exchange, Stellantis shares fell by 3%, while Mercedes-Benz, BMW and Volkswagen shares fell by 1.4-2%. The automotive sector index as a whole lost 1.6%.

The luxury goods market was also affected by the negative dynamics: shares of companies in this segment also fell by an average of 1.6%. According to Ipek Ozkardeskaya, senior analyst at Swissquote, such shocks immediately affect European luxury exporters, as the US remains one of the main sales markets for these companies.

Despite the overall decline, some market segments showed growth. The defense sector index rose against the backdrop of the aggravation of the situation between Russia and Ukraine over the weekend. Geopolitical tensions remain a factor influencing investor behavior and the reallocation of capital towards safer sectors.

In addition to external factors, intra-European events also influenced investor sentiment. In Poland, the stock index fell by 1.4% after Karol Nawrocki won the second round of the presidential election. While the consequences of this vote are still being assessed, the market reaction suggests some uncertainty about the country’s future political and economic course.