European Stocks Dip as Tariff Pressures and Earnings Drive Volatility

European stock markets slipped on July 30, 2025, as investors digested a wave of mixed corporate earnings and growing concerns over U.S. tariff policies. The pan-European STOXX 600 index ended the day down 0.1%, while Germany’s DAX edged lower by 0.1%. France’s CAC 40 bucked the trend, rising 0.2%.

One of the day’s key drags was Adidas, whose shares plunged 5.4% to a four-month low after the company warned that new U.S. import tariffs could add €200 million to its costs in the second half of the year. The news also weighed on JD Sports, which declined 1.8%.

Banking stocks were mixed. UBS rose after posting a strong earnings beat, with pre-tax profits more than doubling, while HSBC disappointed investors with a weaker-than-expected report, sending its shares down 3.4%. The European bank sector overall slipped 0.5%.

On the global front, the International Monetary Fund (IMF) slightly upgraded its 2025 global growth forecast to 3%, but warned of mounting risks from trade tensions. Chief Economist Pierre-Olivier Gourinchas pointed to elevated inflation due to rising import costs, and stressed the importance of central bank independence amid political pressure—especially criticism from U.S. President Donald Trump directed at Fed Chair Jerome Powell.

The IMF flagged notable tariff-related impacts on companies: Stellantis faces a €1.5 billion hit, Philips expects €150–200 million in added costs, and Procter & Gamble reported margin pressure linked to international duties.

In currency markets, the euro held firm while the dollar softened slightly against the yen, as traders await further signals from U.S. trade talks and central bank policy statements. As the August 1 tariff deadline approaches, investors are increasingly focused on macroeconomic indicators and geopolitical developments that could reshape risk appetite in the weeks ahead.