European stocks fall for third day

Major European bourses declined on Tuesday, with both the STOXX 50 and the STOXX 600 slipping 0.2%, as uncertainty over trade tariffs and mixed corporate earnings continued to weigh on investor sentiment. Investors remained cautious as the August 1st deadline for the United States to impose a 30% tariff on a wide range of EU imports approaches, with no clear resolution in sight.

The lack of progress in negotiations has sparked concerns about a potential escalation in transatlantic trade tensions, which could dampen export-driven sectors across the continent and disrupt already fragile supply chains.

Market participants also kept a close eye on the latest batch of corporate earnings, which presented a mixed picture. The chemicals sector was among the worst performers, dragged down by Akzo Nobel, whose shares dropped over 3% after the Dutch paints and coatings giant cut its core profit outlook for the year, citing weaker demand and persistent input cost pressures.

Technology and industrial stocks also lost ground. ASML Holding, a key supplier to the global semiconductor industry, slipped 1.5%, while Schneider Electric fell 0.8%, and Siemens Energy declined 1.2%, reflecting concerns over slower industrial demand and cautious forward guidance.

On a more positive note, SAP shares inched up nearly 0.4% ahead of its upcoming quarterly earnings release, with investors hoping for signs of resilient software demand and progress in its cloud transition. Norsk Hydro was a standout performer, gaining close to 2% after the Norwegian aluminum producer reported stronger-than-expected second-quarter earnings and robust cash flow, helped by operational efficiencies and stable metal prices.

Elsewhere in financials, Julius Baer edged up 0.4% despite reporting a sharp drop in profit. The Swiss private bank was hit by a one-off charge related to the sale of its Brazilian unit and higher loan-loss provisions, but its overall capital position and underlying performance were seen as relatively stable by investors.

Overall, sentiment across European markets remains fragile, with geopolitical risks, monetary policy uncertainty, and uneven earnings results continuing to drive volatility. Investors are likely to stay defensive ahead of key central bank meetings, additional earnings reports, and potential clarity on trade policy developments between the EU and US.