European shares slip on heightened US trade uncertainty

By Johann M Cherian

Feb 23 (Reuters) – European shares edged lower in choppy trade on Monday after President Donald Trump announced a new blanket tariff rate, reviving uncertainty over U.S. trade policy.

The STOXX slipped 0.27% to 628.87 points by ​0942 GMT, with Germany’s DAX down the most by 0.4%.

The pan-European index ‌ended last week with a record high after the U.S. Supreme Court struck down tariffs that Trump had slapped on global economies last year.

Over the weekend, Trump announced a new 10% rate and then lifted it to 15%, sparking ambiguity over the relevance of trade deals, such as those with the ‌European ​Union. The European Commission has ruled out changes.

“It is a ⁠positive outcome and shows that ⁠there are still limits for presidential power in the U.S.,” said Hertta Alava, a senior strategist at Nordea.

“But short-term uncertainty actually rises a bit, because Trump will try to impose tariffs based on other laws. It is also uncertain, how this ​will impact negotiated trade deals.”

The resurgence in trade tensions with the U.S. over Greenland this year, along with Washington’s attempt to upend the global security order, has pushed ⁠the eurozone to forge partnerships with Asia and ⁠Latin America, while also seeking greater cooperation within Europe.

On Monday, technology ​and industrials led sectors declines, while banks, seen as more domestically focused, were among the ​top gainers.

The Euro STOXX volatility index, a reflection of investor nervousness, also spiked ‌0.62 points to 19.31.

The broader defence sector lost 1.1% after Reuters reported that Iran has indicated it is prepared to make concessions on its nuclear programme if the U.S. met certain demands.

French defence technology group Exosens shed 2.6%, retreating from a record high hit ⁠on Friday, even as it issued a higher medium-term guidance.

Novo Nordisk fell 10% after the Danish company said its experimental obesity drug CagriSema did not meet the primary endpoint in ⁠a trial designed to show ‌it was non-inferior to competitor Eli Lilly’s Tirzepatide in reducing body ⁠weight.

Italy’s biggest utility Enel jumped 5.4% after saying it would ​increase its ‌capital expenditure over the next three years, shifting focus to ​renewables, mainly ⁠in Europe and the U.S.

Johnson Matthey slumped 15% after agreeing to slash the sale price of its catalyst technologies business to Honeywell , after the unit underperformed in fiscal 2025.

Dutch postal operator PostNL added 1.5% after forecasting 2026 operating earnings broadly in line with last year’s consensus-beating number.

(Reporting by Johann M Cherian in Bengaluru and Danilo Masoni in Milan; Editing by Mrigank ​Dhaniwala and Eileen Soreng)