European markets ended Monday with a mixed close, reflecting ongoing tensions surrounding global tariffs and economic uncertainty. The STOXX Europe 600 wavered throughout the day and ultimately closed flat, while national indices saw varied results.
The standout of the day was Ryanair, which reported a staggering 128% increase in profits, driven by strong summer travel demand, fuel hedging strategies, and a rebound in intra-European tourism. Shares in the low-cost airline surged over 6% following the earnings announcement, with CEO Michael O’Leary declaring it the company’s “best summer quarter in over a decade.”
But the upbeat sentiment didn’t last across the board. Automaker Stellantis, the parent company of Jeep, Peugeot, and Fiat, issued a stark warning of a $2.7 billion loss stemming from escalating tariffs between the EU and China. The company said it was reassessing its global supply chain strategy and hinted at potential cost-cutting measures across plants in France and Italy.
Other sectors, particularly tech and finance, remained muted as investors weighed signals from the European Central Bank about potential interest rate moves later this quarter.
The broader takeaway? Europe’s economic engine is sputtering, with strong performers like Ryanair offset by deep warnings from manufacturing heavyweights like Stellantis. With trade tensions rising and inflation still stubborn in some regions, market watchers are bracing for a bumpy third quarter.
