- Investors worry about EU-US deal before tariff deadline
- BESI jumps after raising long-term financial targets
- Halma gains after beating annual profit expectations
June 12 (Reuters) - European shares dropped on Thursday, in their fourth straight session of declines, as recent trade optimism stemming from potential deals with the U.S. faded, and mounting geopolitical tensions led to the markets being more cautious.
The pan-European STOXX 600 was down 0.9% at 546.66 points at 0806 GMT, eyeing its steepest one-day fall in more than two weeks.
U.S. President Donald Trump said on Wednesday that he was willing to extend the deadline for trade talks but it was not likely necessary as the U.S. will send offer letters to countries in a week or so.
The announcement comes after trade talks with China resulted in a deal to bring their truce back on track but did not offer a solution to de-escalate longstanding tensions as some tariffs still remained on board.
Treasury Secretary Scott Bessent said the European Union had previously been slower to come forward with robust proposals, but was now showing "better faith".
However, markets were a little concerned about the EU being able to clinch a deal before Trump's July 8 deadline - when the tariff pause expires.
"The trade optimism is waning... The European Union will be one of the last to try to deal and the July deadline might never be met," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
The announcement comes after trade talks with China resulted in a deal to bring their truce back on track but did not offer a solution to de-escalate longstanding tensions as some tariffs still remained on board.
Treasury Secretary Scott Bessent said the European Union had previously been slower to come forward with robust proposals, but was now showing "better faith".
However, markets were a little concerned about the EU being able to clinch a deal before Trump's July 8 deadline - when the tariff pause expires.
"The trade optimism is waning... The European Union will be one of the last to try to deal and the July deadline might never be met," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Halma gained 6.3% after the health and safety device maker's annual adjusted pretax profit beat expectations.
The two were the biggest percentage gainers on the benchmark index.
Tesco gained 1.7% after Britain's biggest food retailer's domestic sales growth accelerated in its first quarter.
Intermediate Capital Group fell 3.8%, among the biggest STOXX 600 percentage decliners as the stock traded without entitlement to its latest dividend payout.
Reporting by Purvi Agarwal in Bengaluru; Editing by Mrigank Dhaniwala and Tasim Zahid
Source: Reuters