European stock markets traded with little overall direction on Monday, as investors remained cautious amid lingering geopolitical uncertainty and a lack of fresh catalysts. The pan-European STOXX Europe 600 hovered close to flat, reflecting a wait-and-see mood across regional equity markets.
Trading was mixed across major national indices. The UK’s FTSE 100 showed limited movement, while Germany’s DAX and France’s CAC 40 also traded without a clear trend, as gains in some sectors were offset by weakness in others. Overall, market activity remained subdued, with investors avoiding large directional bets.
Sector performance highlighted this cautious sentiment. Insurance and some defensive stocks posted modest gains, helping to support the broader market. In contrast, travel and leisure shares slipped, reflecting concerns about discretionary spending and broader economic uncertainty. Other cyclical sectors also struggled to gain traction, as investors remained sensitive to developments that could affect global demand.
Market sentiment continued to be shaped by uncertainty surrounding US–Europe trade relations. Recent volatility followed comments and policy signals from Washington that raised concerns about potential tariffs affecting European exports. Although fears of immediate tariff action eased after signs of a more measured US stance, investors remained wary of sudden shifts in trade policy that could impact key European industries such as autos, luxury goods and manufacturing.
Beyond trade issues, investors were also positioning ahead of upcoming economic data and central bank decisions, particularly from the United States. Expectations around interest rate policy, inflation trends and global growth prospects remain central to market direction, encouraging a cautious approach to European equities.
In summary, European markets ended the session broadly flat, characterized by mixed sector performance and restrained trading activity. While immediate fears around trade escalation have softened, ongoing geopolitical risks and macroeconomic uncertainty continue to limit investor confidence and keep market momentum in check.