European stocks decline amid negative tariff sentiment

European stocks declined amid negative tariff sentiment.

Global sentiment has not been improved by the latest updates on U.S. tariffs, as high duties that Washington imposed on China are expected to remain in force and as negotiations with key U.S. trading partners look set to rumble on beyond the initial July 9 deadline.

The Stoxx Europe 600 index fell by 0.3% while Germany’s DAX

 was lower by 0.7% and France’s CAC 40 was in the red by 0.1%. Meanwhile, the U.K.’s FTSE 100 was the only major index to rise, ending the session up by 0.2%.

Britain’s government is planning to ramp up public spending — but market watchers warn the proposals risk sending jitters through the bond market further inflating the country’s $143 billion-a-year interest payments.

The U.K. government’s long-term borrowing costs spiked to multi-decade highs in January, and the yield on 20- and 30-year gilts continues to hover firmly above 5%.

One commentator said the U.K. government’s spending plans “could create a snowball effect, as investors could potentially become nervous to hold UK debt, which could lead to a further selloff until fiscal stability is restored.”