European stock markets are mixed on the first trading day of the week due to the trade uncertainty caused by the Supreme Court finding some tariffs in the US illegal and the geopolitical risks that may increase on the US-Iran line.
As of 11.30 in the European markets, the Stoxx Europe 600 indicator index is traded at 629.1 points, with a 0.2 percent decrease, and the FTSE 100 index in the UK is traded at 10,666 points, with a 0.2 percent decrease.
In Germany, the DAX 40 index is at 25,133 points with a 0.5 percent depreciation, in France the CAC 40 is at 8,380 points with a 0.6 percent decrease, in Italy the FTSE MIB 30 index is at 46,661 points with a 0.4 percent increase, and in Spain the IBEX 35 index is at 18,278 points with a 0.6 percent increase.
After the US Supreme Court found the “emergency” tariffs implemented by US President Donald Trump to be unlawful, a new tariff move from Trump increased the uncertainties.
Trump, who signed the decision to impose a 10 percent global customs duty on all countries in accordance with the 1974 Trade Act, later announced that he would increase this rate to 15 percent.
Concerns that consecutive opposing steps may be taken between the Trump administration and the Supreme Court have reduced the predictability of trade policies, causing an increase in the risk perception towards US assets.
The European Union (EU) Commission made a statement after the US Supreme Court’s decision on tariffs and then US President Donald Trump’s announcement that the US would impose global tariffs of first 10 percent and then 15 percent on products imported from other countries.
It was stated in the statement that the EU requested full clarity from the USA about the steps it plans to take after the recent Supreme Court decision on the International Emergency Economic Powers Act, and that the current situation is not conducive to ensuring the “fair, balanced and mutually beneficial” transatlantic trade and investment agreed upon by both parties and specified in the EU-US Joint Declaration.
The statement pointed out the importance of fair treatment, predictability and legal assurance for EU companies and exporters and said, “An agreement is an agreement. The EU, the largest trading partner of the USA, remains faithful to its own commitments and expects the USA to fulfill its commitments stated in the joint declaration.” The expression was used.
Analysts emphasized that increasing uncertainties in tariffs is not good news for the market, and pointed out that concerns that geopolitical risks may increase in addition to these developments make pricing difficult.
On the other hand, developments between the USA and Iran are in the focus of investors. Analysts stated that the delegations of the two countries are expected to meet again this week and noted that the high risk perception in the markets may increase if no concrete results come out of the talks.
Analysts stated that geopolitical and political developments in the region will be monitored for the rest of the day, and that a busy agenda will be followed, especially durable goods orders in the USA, factory orders and the speech of European Central Bank (ECB) President Christine Lagarde.
