European shares steady as investors stay cautious after tariff jitters

Published on 01/26/2026 at 03:22 am EST - Modified on 01/26/2026 at 03:25 am EST
(Reuters) - European shares were flat on Monday as traders rattled by recent geopolitical turbulence stuck to the sidelines ahead of the U.S. Federal Reserve's policy decision later this week.
The pan-European STOXX 600 benchmark edged 0.06% higher by 0803 GMT. Insurance stocks gained 0.7%, while travel and leisure stocks fell 0.6%.
The moves reflect lingering caution after turmoil sparked by U.S. President Donald Trump's Greenland-linked tariff threats jolted markets last week.
While the threat has since been withdrawn, investors continue to debate the long-term implications for global trade if tariffs become a standard bargaining chip.
The Federal Reserve's policy decision later this week is also in focus. While the central bank is expected to hold interest rates, concerns about its independence will likely take centre stage.
Automobile stocks were marginally lower. India was planning to slash tariffs on cars imported from the EU to 40% from as high as 110%, Reuters reported.
Meanwhile, shares of French food and beverage maker Danone slipped 2.6%. On Friday, the company said it was recalling specific baby formula batches in targeted markets.
(Reporting by Niket Nishant and Avinash P in Bengaluru; Editing by Mrigank Dhaniwala)

Sumber : Reuters