U.S. President Donald Trump addressed the media at the White House following a significant Supreme Court decision that ruled he had overstepped his authority with the implementation of tariffs. This ruling has had rippling effects on global markets, sparking immediate reactions from European stock exchanges.
As trading commenced, the pan-European Stoxx 600 index recorded a drop of 0.3% shortly after the opening bell in London, with a general decline across most sectors and major bourses. The recent decision by the Supreme Court had initially provided a sense of optimism, as European markets closed positively the prior week. However, Trump’s announcement over the weekend of a new, enhanced global tariff of 15%—up from the previous rate of 10%—led to renewed concern among investors. The tariffs, which Trump characterized in a post on Truth Social as a necessary measure against countries he accused of “ripping” the U.S. off for decades, are set to take effect immediately. He also hinted at the likelihood of further increases in tariffs to come.
In London, JD Sports emerged as a standout, with shares climbing nearly 4% after the company disclosed plans for a £200 million ($270 million) share buyback program aimed at returning capital to investors. Meanwhile, aerospace giant Rolls-Royce saw a slight decline of 0.6% in its shares amid reports of an impending £1.5 billion share buyback expected to coincide with its annual earnings statement, scheduled for release on Thursday.
Conversely, Johnson Matthey faced a steep fall, with shares plummeting 12% to the bottom of the European indexes. The decline followed the company’s agreement to lower the price for its Catalyst Technologies by a quarter to £1.3 billion, a deal that Honeywell International is acquiring.
As the trading week gets underway, no major earnings reports are anticipated on Monday, although companies such as U.K. beverage firm Diageo and German sportswear brand Puma are set to reveal their results later in the week. Investors are also bracing for economic data releases, including Germany’s Ifo business climate survey and Italy’s latest inflation figures.
The impact of the new tariffs has already begun to be felt in U.S. stock futures, which declined on Sunday night, reflecting growing market uncertainty regarding inflation and global growth prospects. Nevertheless, markets in the Asia-Pacific region exhibited resilience, rallying amidst the prevailing tariff-related uncertainties.
