... (to -19 points from -18), reflecting public caution. Key drivers of sentiment in Europe remain news on global trade. Amid ongoing trade disputes, European companies are incurring costs due to reciprocal tariffs – for instance, a recent report from Volkswagen AG showed a more than 30% decline in operating profit in Q2, partly due to additional tariffs on exports to the US. Investors are now looking optimistically toward negotiations between the EU and Washington: a principle agreement is expected ...

... EU goods starting August 1. This move has eased the situation in global trade: the threat of a large-scale tariff war looming over European manufacturers (especially in the automotive sector) has receded. Shares of major European automakers (such as Volkswagen, BMW, Stellantis) reacted positively to reports of the trade compromise, as the direct risk of imposing 25–70% tariffs on car exports to the US was eliminated. However, uncertainty in global trade has not completely dissipated—US negotiations ...