European markets turned cautious on Tuesday as traders reduced exposure in the face of heightened trade ambiguity and revived concerns over AI-driven disruption. By 0815 GMT the pan-European STOXX 600 index was down 0.2% at 630 points.
A resurgence of trade uncertainty set the tone for markets this week. U.S. President Donald Trump’s new blanket tariff rate was expected to take effect from Tuesday, a development that has generated questions about the status of trade deals negotiated last year. Concerns related to that move were compounded when the European Parliament opted to postpone for a second time a vote on the trade agreement reached between the U.S. and Europe last year.
Banks were among the weakest sectors, each sliding more than 1.6% and dragging broader indices lower. The sector’s losses followed a Wall Street selloff on Monday, which was driven in part by renewed nervousness that newer artificial intelligence models could disrupt traditional business activities.
Not all corporate news was negative. A number of companies posted results that exceeded expectations, providing some relief to investors. French vouchers and benefit cards provider Edenred (PA:EDEN) rose 1.4% after reporting 2025 core earnings above market expectations; the company cited rising sales and early benefits from a cost-cutting and efficiency programme. Automotive supplier Forvia (PA:FRVIA) climbed 2.2% after forecasting an improved operating margin of between 6% and 6.5% in 2026.
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Overall, the market reaction combined macro-level trade uncertainty and sector-specific concerns about AI with selective positive corporate updates, leaving European equities modestly lower amid continued ambiguity over trade arrangements and technology-driven competitive shifts.