The benchmark STOXX 600 rose 0.9% to hit a four-month high early in Monday's session but reversed course to close about 0.2% lower, as investors weighed the impact of a new 15% levy on most European Union goods, which is significantly higher than pre-2025 levels.

European stock markets are heading for a higher open today, according to IG data, with major bourses heading for gains of around 0.2%.

The U.S. and Europe have a new trade deal that includes 15% import tariffs on many European goods, including cars. That is good news for the European auto industry, but investors didn’t react happily in Monday trading.