European stock indexes showed no clear direction on Tuesday (9/7), with the STOXX 50 and STOXX 600 moving sideways around the opening line. The main cause was the cautious attitude of investors who continued to monitor developments in trade negotiations between the United States and the European Union. This uncertainty made the market tend to wait and see without a strong direction.

According to a Politico report, the US proposed a base tariff of 10% for all EU goods, but continued to reject the EU's request to remove tariffs from sensitive sectors such as cars, steel, aluminum, and pharmaceuticals. Some sectors such as aircraft and alcoholic beverages could be exempted, but that was not enough to calm market players' concerns. Meanwhile, President Trump officially began sending tariff notifications to countries such as Japan and South Korea, which will be subject to 25% tariffs starting August 1.

In the stock market, the performance of European companies was mixed. Beverage makers Pernod Ricard and Davide Campari Milano rose 1.8% and 1.6% respectively, on the potential exemption of tariffs in the sector. However, other giants such as Nestlé, Hermès, ASML, and Novo Nordisk actually experienced a slight decline of around 0.3%. Meanwhile, SAP and LVMH shares traded flat.

Investors are now waiting for the continuation of trade talks and the EU's response to the US tariff policy. As long as there is no certainty from both parties, the European market is expected to remain in a narrow range. Sectors directly affected by the tariff policy will remain the main focus in the next few days.

Source: newsmaker.id